Ethereum Hits a 2-Month Low: Can ETH Reclaim $3,000?

The crypto market recently faced a significant downturn, causing Ethereum (ETH) to drop to its lowest level in two months. This article explores the factors behind ETH's decline, the actions of large investors (whales), and what it could mean for ETH's future price movements.

Key Takeaways

The total cryptocurrency market lost over $170 billion, with Ethereum hit particularly hard.
ETH fell to a low of $2,681, experiencing extensive long liquidations totaling $242 million.
Notable whale activity has been observed, suggesting some investors are capitalizing on the dip.
The current market indicators hint at potential further declines for ETH, but whale buying could create upward momentum.

Ethereum Dips 8%, Hits a 2-month low

The Impact of the Broader Crypto Market

The larger crypto market recently underwent a significant sell-off, leading to a loss of more than $170 billion in total market capitalization. Ethereum (ETH) was one of the hardest-hit cryptocurrencies, plummeting to a low of $2,681, a level not seen since November 2025. Currently, ETH is trading at $2,714, down by 8.2% over the day, extending its ongoing downtrend. The price drop to $2.6k coincided with increased activity from high-volume investors, commonly referred to as "whales," in both spot and futures markets.

Ethereum's Long Liquidations Reach $242 Million

Following Ethereum's decline to $2.6k, investors holding long positions faced significant liquidations. The total value of long liquidations climbed to $242.4 million, reflecting an increase of $175 million from the preceding day.

Ethereum liquidation

Source: CoinGlass

Amid these extensive liquidations, a renowned ETH trader known as MachiBigBrother experienced a complete liquidation of his 25x long position, resulting in a $2 million loss and total losses exceeding $25.8 million. Interestingly, MachiBigBrother re-entered the market by opening a new long position and depositing $144,573 in USDC into Hyperliquid.

Another investor returned to the market after a two-year absence, selling 699 ETH for $1.87 million. This whale also deposited his funds into Hyperliquid and opened a new long position worth $18 million, indicating confidence among large investors in a potential market turnaround.

Whales Taking Advantage of the Dip

As Ethereum’s price decreased, large investors moved quickly to buy the dip. According to Onchain Lens, one whale acquired an additional 20,000 ETH for $56.03 million, raising their total holdings to 110,154 ETH, valued at around $311.26 million in staking. This accumulation signifies the whales' confidence in the potential for a price recovery.

Furthermore, exchange activity has reflected this buying trend. Data from CoinGlass indicates that $2.34 billion in ETH was withdrawn from exchanges compared to $2.19 billion in inflows.

Ethereum spot netflow

Source: CoinGlass

The resulting Spot Netflow fell by 967% to $146.3 million, hinting at aggressive accumulation by buyers. Generally, higher outflows can lead to increased scarcity, which may propel upward price momentum and pave the way for a market recovery.

Is ETH in Danger of Further Decline?

Ethereum's widespread liquidations following the recent market crash have intensified the downward pressure. Consequently, ETH's Relative Strength Index (RSI) sank deeper into bearish territory, registering at 35 as of the latest data. Similarly, the Directional Movement Index (DMI) fell to 13, confirming the prevailing downtrend and indicating a seller-dominated market.

Ethereum RSI & DMI

Source: TradingView

Despite the bullish moves from whales and other investors re-establishing long positions, these demand-side activities haven't yet reversed the prevailing trend for Ethereum. Current market conditions suggest potential losses could continue for ETH, with the risk of dropping toward $2.5k.

However, if whales persist in buying and absorbing selling pressure, the market could stabilize and work towards reclaiming the $3k mark.

Concluding Thoughts

As the crypto market navigates through turbulent waters, Ethereum's path forward remains uncertain. While large investors show signs of optimism by buying dips, the underlying market indicators suggest caution, leaving room for both potential declines and recoveries in ETH's price.