ETH Whales Buy the Dip as Ethereum Revisits $3K: Where Are Prices Headed?

Ethereum (ETH) slipped under the key $3,000 level earlier today, which rattled retail traders after a week of heavy liquidations. On-chain watchers said the move flushed out leveraged longs, yet it also triggered 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 then bounced back above $3,000 and traded near $3,315 at press time, suggesting buyers defended the round number. This tells traders the $3,000 floor still matters even in a weak U.S. bid environment.

ETH Cycle Shows Distribution After August $4,500 High

CryptoQuant’s analysis shows ETH has completed a full four-stage market cycle this year, from decline to accumulation, markup, and now distribution. After its August peak above $4,500, Ethereum’s price began consolidating, eventually losing key support levels anchored to major AVWAPs, including those from its 2024 and 2021 highs.

Source: CryptoQuant

The latest breakdown has shifted the market balance from buyer control to a neutral-to-bearish phase. Roughly $39 million in long positions were liquidated on Binance during this week’s decline, the largest since early October.

Coinbase Premium Turns Negative As U.S. Buyers Step Back

The “Coinbase Premium Index” dropped to -0.057, its lowest since April. This metric compares US exchange prices (Coinbase) with global ones (Binance), and the negative premium signals weaker demand from American investors.

Throughout Ethereum’s mid-year rally, US buyers were paying a premium, but the recent flip to discount pricing implies domestic traders are now selling into strength or stepping back from risk exposure.

Source: CryptoQuant

For a lasting rebound, analysts note that the Coinbase Premium needs to recover into positive territory, indicating US accumulation. Until then, ETH’s recovery momentum may stay capped near resistance zones between $3,250 and $3,400.

Related: Solana vs Ethereum: Analyst Says SOL Is ‘Winning’

Sentiment Washout Could Mark A Local Bottom

Santiment data shows that Ethereum’s social sentiment has turned sharply bearish, marking its second most negative day in six months. Historically, these spikes in fear have aligned with local price bottoms.

During past downturns, including the “Trump tariff” crash in October, similar sentiment extremes preceded strong reversals. Combined with whale accumulation, this surge in pessimism could hint that the market is nearing exhaustion on the downside.

If ETH manages to reclaim $3,200 with sustained buying volume, the next major resistance sits around $3,600–$3,800. Failure to hold the $2,900–$3,000 support zone, however, might open the path toward a deeper correction near $2,700.

Related: Ethereum Price Prediction: ETF Outflows Force Trendline Breakdown