Ethereum has been under strong selling pressure in recent days as the entire cryptocurrency market has entered a severe correction phase. However, despite the volatility and pervasive concerns, ETH was able to firmly hold the important $3,000 level. This level is considered by many analysts to be essential to sustaining the broad bullish structure.
Now, with prices stabilizing and buyers starting to reappear, several market players are starting to argue that Ethereum’s downturn may be nearing an end and are starting to look for a possible recovery.
Adding fuel to this story is the continued accumulation by major companies, particularly Tom Lee’s Bitmine. Tom Lee is a prominent Wall Street strategist, co-founder of Fundstrat Global Advisors, a longtime Bitcoin and Ethereum bull, and one of the most influential voices in the digital asset market for nearly a decade. His company, Bitmine, operates as a large institutional investment focused on long-term accumulation, market making, and strategic positioning during times of fear.
Recent on-chain data shows that Bitmine continues to purchase ETH despite the price drop, demonstrating strong confidence in the asset’s long-term prospects. This behavior stands in sharp contrast to the broader market, where short-term holders are capitulating.
Bitmine continues to accumulate ETH despite market downturn
According to the latest on-chain data from Lookonchain, the accumulation activity around Ethereum is by no means slowing down. A newly flagged wallet 0xE2ed, believed to be associated with Tom Lee’s Bitmine, received 21,054 ETH (valued at $66.57 million) from Kraken just a few hours ago. The move reinforces the view that larger, more sophisticated players see the recent correction as an opportunity rather than a threat.
The timing of this transfer is noteworthy. Ethereum has been under sustained selling pressure for weeks, with sentiment turning sharply bearish as the market grapples with fear, liquidations, and widespread rotation into stablecoins. However, despite this environment, Bitcoin-linked wallets continue to aggressively absorb supply.
This pattern is consistent with Bitmine’s broader strategy of accumulating high-quality crypto assets during uncertain times for long-term upside. Historically, large inflows into accumulation wallets during drawdowns have often signaled strong institutional investor conviction, preceding a phase of recovery and renewed strength.
Assuming this wallet is actually associated with Bitmine. If so, this shows that some of the market’s best-capitalized participants remain confident in Ethereum’s long-term value, regardless of short-term volatility.
ETH Price Analysis: Testing Long-Term Support Amid High Volatility
Ethereum’s weekly chart shows the asset navigating an important zone as price hovers just above $3,000, a level that has historically served as a major demand area. After weeks of sustained selling pressure, ETH has retreated from the $4,500 area and is currently retesting the long-term moving average. In particular, the 200-week moving average currently sits just below the price and has served as a structural anchor that has supported Ethereum through previous cyclical corrections, including a deep capitulation in mid-2022 and a recovery phase in 2023.
The recent candlestick structure reflects increased volatility, with a long wick suggesting a strong buyer reaction near the $3,000 threshold. Volume has increased slightly during this downturn, indicating active participation from both sellers locking in profits and buyers targeting a possible reversal. However, ETH remains below its 50-week moving average, indicating that short-term momentum remains bearish.
Still, the broader pattern resembles an early cycle pullback in which Ethereum sharply reversed before forming higher lows and resuming the macro uptrend. If ETH can maintain this support band and regain the $3,300-$3,500 area, it could show renewed strength. However, a weekly close below $3,000 risks opening the door to a deeper correction target near $2,700.
Featured image from ChatGPT, chart from TradingView.com
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