Ethereum (ETH) experienced a drop below the $3,000 mark earlier this week, marking the first instance of falling below this psychological barrier since the beginning of November 2024. Currently, the most significant altcoin globally is trading at $2,645, having seen a 3% decline in the past 24 hours.
While this decline impacted the profitability of wallets that acquired ETH above $3,000, it also appeared to provide an opportunity for high-net-worth individuals and financial institutions to make purchases.
Large Investors Acquire Over 400,000 ETH
Data from IntoTheBlock indicates that big investors have been actively buying since the 4th of February. This is evidenced by the substantial increase in net inflows from large holders, shifting from -109,160 ETH to 174,000 ETH within merely four days.
These significant holders tend to accumulate during market downturns and offload their holdings when prices peak. Therefore, the escalating inflows might suggest that ETH has reached a bottom, potentially signaling a forthcoming recovery.
Furthermore, the concentration of Ethereum holdings among whale addresses has steadily grown from 37% to 43% over the past year. With these large holders controlling a significant portion of Ethereum’s supply, their buying behavior could lead to heightened market volatility.
Record High Inflows in ETH ETFs
It’s not just large investors taking advantage of the recent decrease in prices. Institutions also appear to be accumulating, with weekly inflows into Spot Ethereum exchange-traded funds (ETFs) reaching a peak for 2025.
According to SoSoValue data, the weekly inflows into Spot Ethereum ETFs have surged to $420 million. These inflows also represent the fifth highest level since the inception of Ethereum ETFs in July 2024.
This data suggests that the drop in Ethereum below $3,000 attracted interest from institutions, indicating their continued optimism regarding the long-term performance of this cryptocurrency.
Crucial Support Area for Ethereum
The In Out of the Money Around Price (IOMAP) metric has identified a crucial support zone below Ethereum’s current trading value. This support area lies between $2,383 and $2,459, where 2.21 million addresses acquired ETH.
This zone, where many addresses have witnessed high profits, could serve as an attractive entry point for buyers and act as a significant support level. A retest of this zone by ETH, along with confirmation of buyer strength, could potentially initiate a price upswing.
Nevertheless, despite the increasing interest from large investors and institutions, network activity on the Ethereum mainnet continues to trend downwards. Recent reports by CryptoCrypto indicate that Ethereum’s gas fees have dropped to a yearly low, indicating reduced network utilization. This decline may raise concerns about Ethereum’s future price performance.