ETH Whales Buy the Dip as Ethereum Revisits $3K: Where Are Prices Headed?
Ethereum (ETH) briefly dropped below the critical $3,000 level, leading to significant retail liquidations and dip-buying by whales, who acquired over 323,523 ETH worth $1.12 billion in two days. ETH rebounded above $3,000, trading near $3,315, showing the $3,000 support zone's significance. Analysts highlight a full market cycle in 2023, with the latest phase shifting to neutral-to-bearish sentiment. Long positions worth $39 million were liquidated on Binance, and the Coinbase Premium turned negative, signaling weaker US demand. Despite bearish social sentiment, considered a potential sign of bottoming, whale accumulation could support recovery. ETH faces resistance near $3,250–$3,400 and $3,600–$3,800, while failure to maintain $2,900–$3,000 support risks a drop toward $2,700.
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Ethereum Drops Below $3,000 Amid Liquidations
Ethereum (ETH) slipped under the key $3,000 level earlier today, which rattled retail traders after a week of heavy liquidations. On-chain watchers noted that this move flushed out leveraged longs, triggering aggressive dip buying from large holders. According to Lookonchain, whales have purchased over 323,523 ETH worth $1.12 billion in the past two days.
ETH later bounced back above $3,000 and traded near $3,315 at press time, suggesting buyers are defending the key psychological level. This indicates that the $3,000 floor remains crucial even in a weak U.S. market environment.
Ethereum Market Cycle Completes Distribution Phase
CryptoQuant’s analysis reveals that Ethereum has completed a four-stage market cycle in 2025, moving through decline, accumulation, markup, and now distribution. Following its August peak above $4,500, Ethereum’s price consolidated and began losing key support levels tied to major AVWAPs from 2021 and 2024 highs.
The latest breakdown has tipped the market from buyer control to a neutral-to-bearish phase, evidenced by approximately $39 million in long liquidations on Binance during this week’s decline—the largest since early October.
Coinbase Premium Turns Negative
The “Coinbase Premium Index” dropped to -0.057, the lowest since April, signaling weaker demand from American investors. This index compares US exchange prices (Coinbase) to global ones (Binance). The negative premium indicates that U.S. traders are either selling into strength or stepping back from risk exposure.
During Ethereum’s mid-year rally, U.S. buyers paid premiums, but the recent discount pricing suggests a shift in sentiment. Analysts highlight that for ETH to recover sustainably, the Coinbase Premium must turn positive, signifying renewed U.S. accumulation. Until then, ETH recovery momentum may remain capped near resistance levels of $3,250 to $3,400.
Sentiment Washout and Potential Local Bottom
Santiment data reveals that Ethereum’s social sentiment turned sharply bearish, experiencing its second-most negative day in six months. Historically, such extreme fear levels have coincided with local price bottoms. For instance, during prior market downturns, similar sentiment shifts preceded notable reversals.
Combined with whale accumulation activity, the current bearish sentiment could indicate that the market is nearing exhaustion on the downside. A reclaim of $3,200 with sustained buying could push ETH towards resistance at $3,600–$3,800, whereas failure to hold the $2,900–$3,000 support zone might result in further declines to $2,700.
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