Ethereum has struggled to stabilize above the $3,000 threshold, which has become a psychological and technical battleground as bearish sentiment gains momentum across the market. Failing to maintain late-summer momentum, ETH is currently down around 40% from its August peak, putting continued pressure on investor confidence. Analysts are increasingly warning that the overall market may be moving into an early bearish phase, and Ethereum’s weak relative performance is reinforcing these concerns.
Sentiment towards ETH has deteriorated sharply in recent weeks. The price rebound did not last long, volatility remained high, and trading activity suggests the market is dominated by defensive positioning rather than accumulation. Ethereum is likely to fall further if demand does not return to near the current price as higher levels cannot be regained definitively.
Against this cautious backdrop, on-chain data provides contrasting signals. Institutional miner Bitmine continues to expand its exposure to Ethereum, according to numbers tracked by Arcam. The company recently acquired an additional 29,462 ETH worth approximately $88.1 million raised from storage and exchange-related wallets associated with BitGo and Kraken. Amid widespread pessimism, the timing of the purchases has been the focus of market participants.
Although price trends remain fragile, the presence of large, intentional buyers suggests that some investors are positioning beyond short-term volatility. As Ethereum approaches a critical inflection point, it remains an open question whether this activity represents early accumulation or simply an isolated conviction.
Massive accumulation highlights strategic positioning on Ethereum
Bitmine’s Ethereum exposure has reached a new milestone, with the company now holding approximately 7.79 million ETH, worth an estimated $11.2 billion at current market prices. This makes Bitmine one of the largest known Ethereum holders, a position that has come under increasing scrutiny as the market grapples with deteriorating sentiment and rising volatility. Position size alone makes recent trades important for tracking individual wallet activity as well as understanding broader capital movements.
These purchases are notable because they are being made during a period of sustained price declines. Ethereum remains well below recent highs, with many participants adopting a risk-off stance. In that context, large and transparent inflows into long-term custody wallets suggest strategic allocation rather than short-term speculation. Trading through custodians and major exchanges further reinforces the view that these movements are deliberate and orchestrated rather than opportunistic trading.
From a market perspective, activity of this magnitude can impact supply dynamics. As large holders accumulate ETH and remove it from active circulation, available liquidity may tighten, reducing sell-side pressure over time. This does not guarantee that prices will rise immediately, but it often shifts the balance between buyers and sellers in the medium term.
More broadly, Bitmine’s growing position highlights how select institutional investors continue to view Ethereum as a core asset despite unfavorable market conditions. As prices stabilize near critical levels, these flows provide important context for assessing whether the current weakness reflects distribution or the early stages of a long-term repositioning.
ETH struggles to stabilize as daily trends remain under pressure
Ethereum is trading near the $2,960 level on the daily chart, continuing to show signs of structural weakness after an extended correction from its late summer highs. This chart highlights a clear trend change in recent months, with ETH recording a series of falling highs and falling lows without being able to sustain above the $4,500-$4,800 area. This rejection marked the beginning of a broader downward movement that has not yet been fully resolved.
Prices are currently below all major daily moving averages. The faster blue moving averages have sharply reversed and continue to limit any upside attempts, while the 111-day and 200-day simple moving averages are currently sloping downward and are acting as dynamic resistance in the $3,300 to $3,600 zone. This configuration reflects sustained bearish momentum rather than a temporary decline within a strong uptrend.
Volume dynamics support this interpretation. A downturn is usually accompanied by a spike in trading volume, while an attempt at a rebound occurs when there is relatively little participation. This suggests that buyers remain cautious and have limited confidence in the recovery movement.
From a technical perspective, the $2,900-$3,000 area is an important short-term support zone. If this range cannot be sustained, Ethereum will be exposed to an even more severe retracement towards previous consolidation levels. For sentiment and structure to improve, ETH needs to regain the $3,300-$3,500 area and stabilize above the declining daily average.
Featured image from ChatGPT, chart from TradingView.com
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