Ethereum is struggling to stabilize above the $3,000 threshold, a level that has become a psychological and technical battleground as bearish narratives gain traction across the market. After failing to maintain momentum in late summer, ETH is currently down about 40% from its August high, putting continued pressure on investor confidence. Analysts are increasingly warning that Ethereum's weak relative performance could send the broader market into an early bearish phase.
Sentiment surrounding ETH has deteriorated sharply in recent weeks. The price rebound was short-lived, volatility remained high and trading activity suggests the market is dominated by defensive positioning rather than accumulation. The inability to decisively recover higher levels leaves Ethereum vulnerable to further declines if demand does not return near current prices.
Against this cautious backdrop, on-chain data is providing contrasting signals. Institutional-focused miner Bitmine has continued to expand its Ethereum exposure, according to figures tracked by Arkham. The company recently acquired an additional 29,462 ETH worth approximately $88.1 million from storage and exchange-related wallets linked to BitGo and Kraken. With pessimism rampant, market participants are focusing their attention on the timing of purchases.
Price action remains fragile, but the presence of large, intentional buyers suggests that some investors are positioning themselves to look beyond near-term volatility. Whether this activity signals early accumulation or simply isolated confidence remains an open question as Ethereum approaches a critical inflection point.
Large-scale accumulation highlights Ethereum’s strategic positioning
Bitmine's Ethereum exposure has reached a new milestone, with the company now holding approximately 7.79 million ETH, worth approximately $11.2 billion at current market prices. This makes Bitmine one of the largest Ethereum holders, a position it is increasingly gaining traction as the market struggles with worsening sentiment and high volatility. The size of the position alone makes recent transactions important not only for tracking individual wallet activity, but also for understanding broader capital activity.
These purchases are noteworthy because they occur during a period of sustained price weakness. Ethereum remains well below recent highs and many participants have adopted a risk-off stance. In that context, large and transparent inflows into long-term storage wallets suggest strategic allocation rather than short-term speculation. Transactions channeled through custodians and major exchanges further reinforce the view that these moves are intentional and structured rather than opportunistic transactions.
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 is likely to decrease, reducing sell-side pressure over time. This does not guarantee an immediate price increase, but often changes the medium-term balance between buyers and sellers.
More broadly, Bitmine’s expanding position highlights how select institutional players continue to view Ethereum as a core asset despite adverse market conditions. As prices consolidate near critical levels, these movements provide important context for assessing whether the current weakness reflects distribution or the early stages of a longer-term realignment.
ETH is struggling to stabilize as the daily trend continues to come under pressure.
Ethereum is trading near the $2,960 level on the daily chart, continuing to show signs of structural weakness after a prolonged correction from late summer highs. The chart highlights a clear trend change in recent months, with ETH hitting a series of lower highs and lows after failing to maintain the $4,500-$4,800 area. That rejection marked the beginning of a broader downward movement that has yet to be fully resolved.
Prices are currently below all major daily moving averages. The faster blue moving averages have rolled over sharply and continue to limit upside attempts, while the 111-day and 200-day simple moving averages are now tilted downward and are acting as dynamic resistance in the $3,300-$3,600 area. This configuration reflects continued bearish momentum rather than a temporary decline within a strong uptrend.
Volume dynamics support this interpretation. While selling phases are typically accompanied by surges in trading volume, attempted rebounds have occurred with relatively quiet participation. This means buyers remain cautious and confidence in a recovery move is limited.
From a technical perspective, the $2,900-$3,000 region is an important near-term support area. Failure to maintain this range could expose Ethereum to a deeper retracement to previous consolidation levels. For sentiment and structure to improve, ETH would need to regain the $3,300-$3,500 region and stabilize above its average daily decline.
Featured image from ChatGPT, chart from TradingView.com
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