Ethereum (ETH) recently experienced a notable dip below the $3,000 mark, a level it had held since early November 2024. Trading at around $2,645 at press time, ETH saw a 3% drop in the last 24 hours. While this decline led to losses for wallets that had purchased ETH above $3,000, it also created a potential buying opportunity for large investors and institutions looking to capitalize on the price dip.

In the last few days, Ethereum has witnessed a surge in large-holder netflows, as revealed by blockchain analytics platform IntoTheBlock. These netflows flipped from -109,160 ETH to a positive 174,000 ETH in just four days, signaling that whales have been taking advantage of the current market correction to increase their holdings. This type of accumulation often indicates that these large investors anticipate a future price rebound. As a result, the market may have found its bottom, suggesting a potential recovery ahead for ETH.

Whale activity is particularly noteworthy as Ethereum’s whale concentration has steadily increased over the past year. Large addresses now control 43% of the total supply of ETH, up from 37% previously. With such a significant portion of Ethereum’s supply in the hands of whales, any major buying activity can lead to increased volatility in the market. This heightened concentration could amplify price movements, potentially pushing ETH higher as these large holders continue to accumulate.

Alongside whale accumulation, institutional demand for Ethereum has also been on the rise. Data from SoSoValue revealed that weekly inflows to Spot Ethereum exchange-traded funds (ETFs) hit a 2025 high of $420 million. These inflows marked the fifth-highest level since the ETFs introduced in July 2024. Institutions are clearly optimistic about Ethereum’s long-term potential, especially after the price dip below $3,000, making them more eager to enter the market at a discounted rate.

One crucial factor for Ethereum’s potential recovery is the key demand zone identified by the In/Out of the Money Around Price (IOMAP) metric. This zone lies between $2,383 and $2,459, where 2.21 million addresses have purchased ETH. Given the high profitability of these addresses, this area is considered an important support level for Ethereum. If the price retests this zone and shows strong buyer activity, ETH could see a rebound, with a potential rise back toward the $3,000 mark in the medium term.

However, while whale and institutional accumulation signals suggest a positive outlook, Ethereum is facing some challenges. Ethereum’s gas fees, a key indicator of network activity, have recently dropped to a low not seen since 2025, signaling a decline in on-chain usage. Reduced network activity may have negative implications for the price of ETH in the long run, as lower gas usage could lead to less demand for Ethereum.

Despite these concerns, the significant accumulation by whales and institutional investors points to a potential price recovery for Ethereum. If the demand zone holds and Ethereum’s network activity stabilizes, ETH may have the momentum needed to break out of its current range and push toward $3,000. With increasing whale and institutional interest, Ethereum could be on the cusp of a strong recovery, but network usage trends will need to improve for sustained price growth.

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