Ethereum Whales and Institutions Accumulate as Price Drops Below $3,000

Ethereum (ETH) experienced a significant dip earlier this week, falling below the $3,000 mark for the first time since early November 2024. At the time of writing, the world's largest altcoin was trading at $2,645, following a 3% decline in 24 hours. While this dip affected the profitability of wallets that purchased ETH above $3,000, it also presented a buying opportunity for whales and institutions.

Data from IntoTheBlock revealed that whales have been actively purchasing ETH since February 4th. This is evident in the surge of large holder netflows, which increased from -109,160 ETH to 174,000 ETH within just four days. Historically, whales tend to accumulate during dips and sell at the top, suggesting that the rising inflows may indicate that ETH has bottomed and is poised for a recovery.

In addition to whales, institutions also appear to be accumulating ETH following the recent dip. Weekly inflows to Spot Ethereum exchange-traded funds (ETFs) reached a 2025 high of $420M, marking the fifth-highest level since the products began trading in July 2024. These figures suggest that institutions remain bullish about Ethereum's long-term performance.

The In Out of the Money Around Price (IOMAP) metric identified a key demand zone below Ethereum's current price. This demand zone lies between $2,383 and $2,459, where 2.21M addresses purchased ETH. Given the high profitability of addresses that bought ETH at this zone, it could serve as an ideal entry point for buyers and provide support. If ETH drops to retest this demand zone and confirms buyer strength, it could trigger a price recovery.

However, despite the rising interest from whales and institutions, network activity on the Ethereum mainnet has continued to decline. Ethereum's gas fees recently reached a 2025 low, pointing to reduced network usage. This decline in network activity may not bode well for ETH's future price performance.