Ethereum has regained the $3,000 level after weeks of strong selling pressure, but momentum continues to wane and the recovery remains fragile. Fear continues to dominate the market, and confidence among retail traders has fallen significantly.
Analysts are warning that bulls are losing control of the trend, and some are beginning to call for the early stages of a potential bear market. With Ethereum trading nearly 40% below its all-time high in August, any move upwards is being held back, and the broader market environment is not yet stable.
Despite this uncertainty, major companies continue to accumulate ETH, a signal that contrasts with the prevailing bearish sentiment. New data from Lookonchain shows that Bitmine has been consistently purchasing Ethereum during this downturn and shows no signs of slowing down its accumulation strategy.
This persistent interest among large holders suggests that while short-term traders remain cautious, institutional investors and wealthy buyers may still see long-term value at current levels.
Bitmine is accumulating as Ethereum struggles for momentum
Lookonchain reports that Bitmine continued its aggressive accumulation strategy, purchasing an additional 14,618 ETH (worth approximately $44.34 million) a few hours ago. This new acquisition further strengthens Bitmine’s already huge Ethereum position, which currently totals 3.436 million ETH. At current prices, their holdings are valued at approximately $10.39 billion, confirming their long-term beliefs despite continued market turmoil.
This level of accumulation by major players stands in sharp contrast to broader market sentiment, where uncertainty and fear persist. Retail investors remain cautious, and many analysts argue that Ethereum’s failure to regain momentum above $3,000 is indicative of a declining trend.
However, Bitmine’s continued purchases suggest a fundamentally different outlook, one rooted in long-term valuation rather than short-term volatility.
Large, disciplined buyers often stock up during market downturns, viewing discounted prices as strategic entry points. Bitmine’s behavior reflects this pattern and may indicate expectations for price appreciation in the coming months.
Still, for Ethereum to benefit from this institutional trust, it needs to stabilize and build a stronger support base. The coming weeks will reveal whether this sustained whale demand outweighs the broader selling pressure and helps ETH break out of its current downtrend.
ETH tries to recover but faces strong resistance
Ethereum is recovering from weeks of sustained selling pressure and attempting to regain the $3,000 level, but is still struggling to build meaningful momentum. The chart shows ETH rebounding from recent lows near the mid-$2,600s, where a cluster of demand has emerged and the steep decline has stopped.
However, despite this pullback, Ethereum remains below all three major moving averages (50-day, 100-day, and 200-day), which are currently acting as stratified resistance zones.
The 50-day SMA is trending downward and is already below the 100-day SMA, indicating a weakening market structure. Meanwhile, the 200-day SMA is slightly above the current price, reinforcing the idea that ETH remains in a vulnerable position. Price trends remain volatile and have consistently formed lows since the peak in early October, reflecting sustained bearish control.
Volume patterns also support this alarming situation. Although the recent rebound has been accompanied by a modest increase in purchasing activity, it is still much weaker than the sales volumes observed during the November capitulation. For a meaningful trend reversal, ETH would need to break out of the $3,300-$3,400 area, retake the moving average, and establish a higher low.
Featured image from ChatGPT, chart from TradingView.com
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