Ethereum Drops to $2,300 as $1.16 Billion in Liquidations Spark Whale Purchasing

As reported by Alphractal, the cryptocurrency market is currently experiencing its most significant bearish trend since 2023. Total liquidations have reached $2.59 billion, with Ethereum alone accounting for $1.16 billion of this figure.

Key Takeaways

Ethereum's price has dropped to $2,300 amidst a broader market downturn.
Total liquidations reached $2.59 billion, with Ethereum accounting for $1.16 billion.
Some investors, including major wallets, are taking advantage of the price dip to accumulate ETH.
Institutional players like BitMine and “HyperUnit” face significant losses, demonstrating vulnerability in current market conditions.
Current liquidity indicators signal ongoing selling pressure, with a potential for further declines unless market sentiment shifts positively.

Ethereum drops to $2,300 as $1.16 billion in liquidations spark whale purchasing

The second-largest cryptocurrency by market capitalization, Ethereum (ETH), has recently fallen to around $2,300 due to increased risk aversion among investors. While many chose to exit the market at a loss, some viewed this price drop as an opportunity to enter the market at a lower cost.

Investors See the Price Drop as an Opportunity

During the last trading session, Ethereum faced a sharp decline, hitting its lowest point since July 2025, according to TradingView data. Despite the drastic downturn, some investors took the chance to buy ETH in large volumes, spending millions even amidst widespread fear.

Two notable wallets, known as “7 Siblings” and “0xB7,” led this buying spree, investing a combined total of $57.44 million into Ethereum. The “7 Siblings” wallet is known for purchasing ETH during significant market downturns and invested $31.08 million in this latest price drop. Currently, this wallet holds approximately $599.53 million in Ethereum.

Similarly, wallet “0xB7” took advantage of the market dip to acquire 10,000 ETH, costing about $26.36 million at the time. This strategy increased its overall Ethereum holdings to around $294.79 million. Accumulating assets during periods of high uncertainty often signals long-term investing at perceived discounted prices, though it doesn't guarantee price recovery.

While these large buy orders hint that Ethereum might be nearing a local bottom, further price drops could still occur.

Major Players Face Significant Losses

However, not all large investments in Ethereum have been successful. BitMine’s Ethereum Digital Asset Treasury (DAT) is currently grappling with an unrealized loss of about $6 billion. BitMine has been gradually acquiring ETH, positioning itself as one of the largest corporate holders, but this approach has resulted in considerable drawdowns, particularly when Ethereum price briefly dipped below $3,000.

In an attempt to mitigate market losses, BitMine has staked approximately $3.33 billion worth of ETH, looking for yield amidst market instability as of January 12.

This situation highlights that institutional investors are also vulnerable to market volatility. Another whale, labeled “HyperUnit” and associated with Garrett Jin, completely exited its Ethereum holdings after the recent market sell-off, thereby solidifying a $250 million loss. Initially, HyperUnit held ETH worth $299.46 million, but now its wallet contains just $53 in Ethereum.

These cases underline the depth and seriousness of the market sell-off, showing that even aggressive investment strategies can incur substantial losses, leaving open the possibility of further downturns.

Analyzing Liquidity Trends

Liquidity and trading volume data offer insight into Ethereum's current market dynamics. The Money Flow Index (MFI), which monitors capital inflows and outflows, indicates ongoing selling pressure. At the moment, the MFI is below the neutral 50 mark, standing around 41, thereby showing that sellers continue to dominate buyers.

This negative sentiment is also supported by the Chaikin Money Flow (CMF) indicator, which, used for evaluating the balance of buying and selling pressure, remains firmly in the negative zone.

ETH price indicator.

The CMF has stayed below zero since entering bearish territory after a brief recovery in July 2025, which suggests the potential for continued downward movement, putting the $2,000 price point in sight unless sentiment begins to favor a recovery.