Ethereum News Today: Ethereum Whales Buy, ETFs Bleed: Price Falls Below $3,000

Ethereum's price plummeted below $3,000 for the first time since early November, sparking fears of a deepening bear market and raising questions about the cryptocurrency's long-term trajectory. The drop, which saw ETH dip to $3,066 on Sunday, coincided with a surge in ETF redemptions and growing concerns over waning confidence among institutional investors. "Spot ether ETFs posted net outflows in four of the past five weeks," noted investment manager Timothy Peterson, highlighting a trend that signals eroding conviction among long-term holders. The decline comes amid broader crypto market turbulence, with Bitcoin also retreating to a six-month low and triggering over $1.4 billion in liquidations.

The sell-off has been exacerbated by technical pressures. Ethereum's 4-hour chart shows the asset trapped in a narrowing falling wedge, a pattern often preceding volatile breaks. While ETH remains above its 200-day moving average near $2,550-a historical support level-it faces critical resistance at the 200-day EMA ($3,660) and key supply zones near $3,550 and $3,800. On-chain data further reveals a paradox: while large holders (whales) are accumulating ETH, their actions may not be enough to stabilize prices. A single whale added $1.38 billion in ETH over 10 days, leveraging borrowed funds to expand its position. Meanwhile, Ethereum whales with 10K–100K ETH holdings increased their collective balance by 180K ETH in a week, though analysts warn that a breach below $3,100 could trigger accelerated selling pressure.

The broader market context is equally concerning. Crypto funds recorded $2 billion in outflows last week, the largest since February 2025, as Bitcoin and Ethereum ETFs continued to bleed assets. Bitcoin's retreat below $100,000 has shaken momentum-driven traders, with macroeconomic headwinds-including fading hopes for a Federal Reserve rate cut-compounding liquidity challenges. "This is a liquidity reset, not a loss of belief in the asset," said Alessio Quaglini, CEO of Hex Trust, pointing to a cascade of forced liquidations following renewed U.S.-China trade tensions in late October.

Despite the gloom, some analysts remain cautiously optimistic. Ethereum's price could still find a floor at $2,850, a level that has historically acted as a cyclical support zone. Additionally, strategic buying by firms like Strategy, which added $835.6 million in Bitcoin to its treasury, suggests institutional demand persists. However, the path to recovery remains uncertain. With ETF outflows continuing and retail investor sentiment at a low, Ethereum's ability to reclaim its all-time high appears increasingly distant.