- •Whales buy $1.12 billion in Ethereum after sharp $3,000 dip.
- •Coinbase Premium turns negative, signaling weaker U.S. investor demand.
- •Bearish sentiment spikes as accumulation hints at possible market bottom.
Ethereum briefly dipped under the $3,000 mark earlier today, sparking anxiety among retail traders after a series of liquidations swept through the market. According to Lookonchain, the decline flushed out highly leveraged longs but also attracted large investors, who bought over 323,523 ETH valued at $1.12 billion within the last two days.
After the sell-off, Ethereum quickly rebounded above $3,000 and hovered near $3,315 at press time. This bounce signaled that buyers defended the key round number, reaffirming that the $3,000 zone still acts as a strong floor even amid weak U.S. market participation.
Despite the recent $ETH drop, many whales have been buying the dip — accumulating 323,523 $ETH($1.12B) over the past 2 days. pic.twitter.com/KOA1Z4VAab
— Lookonchain (@lookonchain) November 5, 2025
Market Cycle Enters Distribution Stage
CryptoQuant data revealed that Ethereum has now completed a full four-stage market cycle—decline, accumulation, markup, and distribution. Following its August peak above $4,500, ETH entered a consolidation phase and eventually broke below major support levels tied to volume-weighted averages from 2021 and 2024 highs.
This breakdown shifted the overall tone from buyer-controlled to neutral-to-bearish. Binance recorded roughly $39 million in liquidated long positions this week, the largest since early October, underscoring the intensity of the correction.
Coinbase Premium Turns Negative as U.S. Demand Fades
The “Coinbase Premium Index,” which compares Coinbase and Binance pricing, fell to -0.057—its lowest since April. The negative reading indicates weaker demand from U.S. traders, who appear to be selling into rallies or reducing exposure.
Throughout the mid-year rally, American investors consistently paid a premium for ETH, but that trend has now reversed. Analysts say a lasting rebound requires the premium to turn positive again, showing renewed U.S. accumulation. Until then, price recovery could face resistance between $3,250 and $3,400.
Sentiment Turns Bearish but May Signal a Local Bottom
Santiment reported that Ethereum’s social sentiment has dropped to its second most negative level in six months. Historically, these extreme fear readings have coincided with local bottoms and short-term reversals.
Bitcoin's drop to $98.9K and Ethereum's to $3.09K may have your timeline showing fellow traders left in shambles. But social data indicates there are still many buying dips with confidence. We look at $BTC, $ETH, & $XRP sentiment after the bloodbath. 👇https://t.co/smG1LYyI77pic.twitter.com/SdEusnzXUv
— Santiment (@santimentfeed) November 5, 2025
Combined with heavy whale buying, the pessimistic sentiment may point to an approaching market reset. If ETH can sustain moves above $3,200 with strong volume, traders expect the next major resistance around $3,600 to $3,800. Failure to defend $2,900 to $3,000 support, however, could open room for a deeper slide near $2,700.