Ethereum retail is in the mood to ‘buy the dip’ as ETH prices drop below $2k
Ethereum's native token Ether (ETH) has fallen below $2,000 for the first time since March, but retail traders are yet to react with panic.
Main Receptors:
Ethereum retail data shows that “buy dip” sentiment is increasing, which may lead to further downside in the future. Macro data, such as ETF net flows and whale behavior, institutions are selling ETH.
Retail FOMO warns of further ETH price hikes
According to data source Sentiment, as of Thursday, calls for “buy deep” were increasing on social media after ETH missed a key psychological support level.
That suggests retailers are viewing the downturn as an opportunity for discounting rather than a warning sign.
Historically, excessive public optimism after a severe downturn can signal a further downturn ahead, as retail sentiment often rises before prices stabilize. A more contrarian buy signal can only be issued when FOMO fades and panic takes over.
“There will be an opportunity to buy Ethereum, but ideally many will want to wait for FOMO to cool down and show panic,” Santiment said in a Thursday post.
“That way you buy while True Blood is on the way.”
Institutional sales are overwhelmingly wholesale.
It appears that large Ethereum investors are moving against retail buyers.
Harvard University Endowment Fund $87 million ETH He dismissed the position entirely recently, saying that Bankless founder David Hoffman, one of Ethereum's advocates, had sold his ETH holdings.
US spot Ether ETFs have seen a steady flow of outflows since May 7, recording more than $470 million in outflows over the past two weeks.
US Spot ETH ETF Daily Net Flows. Source: Glassnode
Ethereum Mega Wells, wallets that hold more than 10,000 ETH, are reducing exposure. So far, they have cut their balances by more than 5% by 2026, according to Glassnode data.
Ethereum mega-well net position change and balance with ETH value. Source: Glassnode
Tom Lee's BitMin holds 5.21 million ETH or approximately 4.31% of the supply, remaining part of the push to own 5% of the network.
RELATED: Bitmine Slows Ethereum Purchases, Plans to Own 5% of Supply by December
Lee argued that Ethereum is entering a long-term “supercycle” driven by Wall Street tokenization and the use of independent public blockchains by AI agents.
But that bet is now in deep water. BitMine's average purchase price of ETH is set at around $3,484, while ETH trades around $1,990, while the firm has experienced unexpected losses of $8.07 billion, according to DropStab.COM.
Bitmine Ethereum Portfolio Performance Chart. Source: DropStab.COM
ETH price may test the $1,750 macro low.
Since Thursday, ETH has fallen as much as 3% intraday to $1,965. The move resulted in a drop of more than 40% from the 2026 high near $3,400.
A bearish reversal pattern formed by two ascending and converging trend lines, following a breakout from a recent bearish rising wedge.
ETH/USD three day price chart. Source: TradingView
Such setups are resolved when the price breaks below the lowest trend line, the bottom target is measured by subtracting the maximum height of the wedge from the breakout point.
ETH entered a breakout phase on Saturday and then extended its losses, retracing its measured lower target to $1,750, down 18.5% from current levels.
In a Thursday post, analyst Ardem set $1,750 as the next low target for ETH.
