Ethereum Updates: Major Holders Accumulate as ETFs See Outflows, Price Drops Under $3,000

Ethereum experienced a sharp decline, falling below $3,000 for the first time since early November. This drop has intensified concerns about a prolonged bear market and cast doubt on the cryptocurrency’s future prospects. On Sunday, ETH touched $3,066, coinciding with a spike in ETF withdrawals and mounting worries about diminishing institutional trust.

in four out of the last five weeks, according to investment manager Timothy Peterson, who pointed to this as evidence of weakening confidence among long-term investors. The downturn is part of a broader slump across the crypto sector, with to its lowest point in six months, leading to more than $1.4 billion in forced liquidations.

Technical factors have further fueled the sell-off.

On the 4-hour chart, Ethereum appears confined within a tightening falling wedge—a formation that often leads to sharp price swings. While ETH is still trading above its 200-day moving average near $2,550, which has historically provided support, it faces significant resistance at the 200-day EMA ($3,660) and at major supply levels around $3,550 and $3,800. a contradiction: although large investors (whales) are accumulating ETH, their purchases may not be sufficient to halt the decline. One major whale over a ten-day period, using borrowed capital to increase exposure. At the same time, whales holding between 10,000 and 100,000 ETH by 180,000 ETH in just one week. Still, analysts caution that if ETH falls below $3,100, it could trigger even more aggressive selling.

The wider market outlook remains troubling.

last week—the largest since February 2025—as and Ethereum ETFs continued to lose assets. has unsettled traders who rely on momentum, while broader economic challenges—such as fading expectations for a Federal Reserve rate cut—have worsened liquidity issues. “This is a liquidity adjustment, not a crisis of confidence in the asset,” said Alessio Quaglini, CEO of Hex Trust, that followed renewed trade tensions between the U.S. and China in late October.

Despite the negative sentiment, some market watchers remain cautiously hopeful. Ethereum may find support near $2,850, a level that has historically served as a cyclical floor. Moreover,

, which recently added $835.6 million in Bitcoin to its reserves, indicate that institutional interest has not disappeared. Nevertheless, the road to recovery is uncertain. With ETF outflows persisting and retail investor confidence at a low point, Ethereum’s chances of reaching its previous record highs seem increasingly remote.