Ethereum lost the $3,000 mark and failed to regain it for days, raising concerns that the market is entering a deeper correction. Selling pressure continues to build as traders exit positions and sentiment turns cautious.
The overall cryptocurrency market is also in a slump, fueling speculation that a bear market could form sooner than most expected. Fear and uncertainty are currently dominating social indicators, derivatives data, and spot flows, with investors questioning whether ETH has already set a cycle top. However, despite the pessimism and deteriorating price structure, not all players are exiting. In fact, some of the largest market participants are actively building up capital.
New data from Lookonchain reveals that Tom Lee’s Bitmine purchased 69,822 ETH worth $197.25 million in the last week alone. This brings their total holdings to a staggering 3,629,701 ETH, worth approximately $10.25 billion.
Bitmine faces huge unrealized losses as market waits for direction
According to Bitmine’s press release, the company’s average purchase price was close to $3,997, resulting in approximately $4.25 billion in unrealized losses at current market levels. This disclosure highlights the amount of conviction behind Bitmine’s accumulation strategy, but it also highlights how deeply Ethereum has reversed from its recent highs. The continued drawdown reflects the broader uncertainty gripping the market, with fear and hesitation overwhelming momentum and liquidity remaining thin.
The market is currently entering a critical phase that could determine price trends in the coming months, as traders assess whether ETH can stabilize and begin to regain lost ground. Many analysts argue that despite the sharp retracement, Ethereum is still positioned to recover, especially if the macro environment improves and selling pressure eases. They point out that historically, similar aggressive whale accumulations have occurred during periods of market downturns, preceded by strong rebounds and restoration of investor confidence.
However, some warn that if ETH is unable to regain momentum above a key psychological level, the downside continuation could deepen further. Therefore, this moment is the difference between bullish expectations and bearish caution.
Ethereum price action shows weak recovery attempts amid bearish structure
Ethereum price action on the daily chart continues to reflect a market struggling to regain upward momentum after losing the $3,000 level. While the recent pullback to $2,900 indicates a temporary reaction, the overall structure remains bearish as ETH trades below its 50-day, 100-day, and 200-day moving averages.
This moving average alignment (fast average sitting below slow average) confirms a sustained downward trend that has been underway since early October.
The chart also shows lower highs and lower lows, confirming that buyers have not yet regained control. A spike in volume during a decline indicates that bearish activity is driving market movement rather than accumulation. Despite the brief recovery, any attempts to move higher have been rejected near resistance near the $3,150-$3,250 range, suggesting that sentiment remains fragile.
Additionally, the red 200-day moving average near the $3,500 zone is now an important long-term threshold. If ETH is unable to regain this area in the coming weeks, we will likely see continued consolidation or an even more severe correction.
For now, Ethereum remains in a vulnerable position and needs stronger demand to turn the trend back to the bullish side.
Featured image from ChatGPT, chart from TradingView.com
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