Institutional investors and large crypto holders viewed Ether’s drop below the $3,000 level as a buying opportunity. However, market data continues to point to elevated downside risk, with a potential move toward the $2,700 area still on the table.
Ether closed a daily candle below $3,000 on Tuesday, but onchain data shows that major players were actively accumulating during the sell-off. While whale buying suggests growing confidence, mixed indicators highlight increasing short-term uncertainty for ETH.
Whales and institutions buy the ETH dip
ETH fell 7.83% to $2,938 on Tuesday, marking its sharpest one-day decline since November 4, 2025. Despite the pullback, onchain analytics firm Lookonchain reported steady accumulation by whales and institutional investors.
According to the data, Trend Research borrowed $70 million in USDT from Aave to purchase 24,555 ETH worth roughly $75.5 million, lifting its total holdings to 651,310 ETH, valued at around $1.92 billion. In a separate transaction, an over-the-counter whale wallet acquired 20,000 ETH, worth $58.8 million, through FalconX and Wintermute.
Institutional accumulation was not limited to trading activity. BitMine added 92,511 ETH in January, valued at approximately $268 million, highlighting growing interest in staking yield. The company said it plans to stake up to 4.2 million ETH, potentially generating between $367 million and $393 million annually in staking rewards, alongside an additional $35 million to $40 million from cash operations.
Conflicting signals raise downside risks
Not all large capital flows were supportive. On Wednesday, BlackRock transferred 30,828 ETH, worth about $91 million, to Coinbase Prime. The move raised concerns about potential sell-side pressure and increased short-term volatility.
Technical picture turns cautious
From a technical perspective, ETH’s broader trend weakened after the price closed below $3,000. The decline also pushed ETH under the four-month point of control near $3,100, the level with the highest traded volume over that period. This suggests the market has lost a key area of acceptance.
The breakdown coincided with a bearish break of structure, pointing to further downside risk. Based on current liquidity zones, ETH could eventually test levels around $2,718 and $2,620.
In the past 24 hours, approximately $287 million in leveraged positions were liquidated, with long positions accounting for $257 million. This underscores the intensity of forced selling during the move lower.
Additional data from Hyblock shows the whale-versus-retail delta has turned negative, falling to -6,480. This suggests large players are cutting long exposure or adding shorts more aggressively than retail traders, a pattern often seen ahead of heightened volatility.
At the same time, around 76% of retail traders remain positioned long, increasing the likelihood of sharp price swings or a potential bounce near key support levels.
