Ethereum (ETH) experienced a notable drop below $3,000, with recent data indicating that significant investors capitalized on this decline. The current accumulation trend among ETH whales is a sign of growing confidence; however, some indicators point towards increased market risks for this cryptocurrency.

Key Highlights:

• ETH whales and institutional players have collectively invested over $130 million in Ether as it slid under $3,000.
• BitMine accumulated over 92,500 ETH in January, underlining the escalating appetite for staking rewards.

Whales Take Advantage of the Dip

On Tuesday, ETH’s value fell by 7.83% to $2,938, marking its steepest daily correction since November 2025. Despite this, on-chain data from Lookonchain reveals that large holders continued to purchase ETH.

Notably, Trend Research leveraged $70 million USDt (USDT) from Aave to acquire 24,555 ETH valued at approximately $75.5 million, boosting its portfolio to 651,310 ETH, worth $1.92 billion. Additionally, a separate whale address purchased 20,000 ETH for about $58.8 million via OTC platforms.

Institutional accumulation extended beyond trading desks, with BitMine investing an impressive 92,511 ETH in January alone, assessed at $268 million. This firm expressed that it aims to become the leading Ethereum staking entity with a projected 4.2 million ETH staked, potentially generating annual staking rewards between $367 million and $393 million, and an additional $35 to $40 million from cash operations.

Nevertheless, not all movements of significant capital have been supportive. On Wednesday, BlackRock transferred 30,828 ETH, roughly valued at $91 million, to Coinbase Prime, raising concerns about potential market volatility.

ETH’s Downward Trend and Market Watch

From a technical perspective, ETH’s long-term chart has experienced a bearish transition after closing below the $3,000 mark. This drop pushed prices beneath a critical four-month point of control around $3,100, indicating a lost consensus on pricing.

The breakdown coincides with a bearish structure shift, suggesting the possibility of further downside toward liquidity areas around $2,718 and $2,620. Over the last 24 hours, $287 million in leveraged positions have been liquidated, with the majority being long positions, indicating considerable selling pressure.

Hyblock’s data further emphasizes a cautious sentiment, revealing a shift to a negative whale versus retail delta, dropping to -6,480 for ETH. This situation suggests that whales may be lowering their long exposure or are significantly increasing short positions compared to retail traders, historically precedeing instances of heightened volatility. Conversely, 76% of retail traders remain in long positions, hinting at possible resistance around critical support levels.