Ethereum (ETH) remains under bearish pressure, trading around $3,710 after falling 4.5% over the past 24 hours.
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The asset struggled to maintain its upward trend, falling below the $3,800 level and testing the important $3,715 support area. Analysts note that this level has been retested several times since October and has served as a key battleground between bullish and bearish sentiment.
Technical indicators such as RSI (Relative Strength Index) and MACD show weakening momentum, suggesting that sellers still maintain control. A decisive close below $3,680 could result in ETH suffering deeper losses, reaching $3,550 or even $3,500.
However, a bounce from this level could lead buyers to target the resistance area near $3,920 and $4,000. Interestingly, despite the short-term downtrend, Ethereum's broader chart structure forms a descending wedge pattern, a setup that often precedes a bullish reversal.
ETH's price records small losses on the daily chart. Source: ETHUSD on Tradingview
Ethereum (ETH) on-chain data accumulation signal despite downtrend
While technical experts paint a cautious picture, on-chain activity reveals signs of underlying strength.
According to data from Glassnode and Sentora, more than $600 million of ETH was withdrawn from exchanges in just one week. This mass exodus often means accumulation as investors move their holdings into cold wallets for long-term storage.
Supporting this view, Ethereum's MVRV ratio, a key valuation metric that compares market value to realized value, is currently at 1.50, a level historically associated with market balance before major uptrends.
Staked Ethereum in particular is maintaining a much higher MVRV of 1.7, suggesting that long-term holders are confident in ETH's recovery. With 36.1 million ETH staked, almost a third of total supply, the data highlights reduced selling pressure and increased network resilience.
Preparing for a surge in stablecoins and a rebound in institutional trust
Beyond price action, the Ethereum ecosystem continues to expand. In October, stablecoin trading volume on the network hit a record high of $2.82 trillion, a 45% increase from the previous month, driven by yield farming and institutional liquidity management.
Analysts interpret this as a sign of capital circulation rather than a market exit. Traders store their funds in stablecoins while waiting for favorable conditions to re-enter their ETH positions.
Institutional inflows into Ethereum-based products also exceeded $15 billion in 2025, reflecting continued confidence in Ethereum’s long-term role in decentralized finance (DeFi) and payments.
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While near-term volatility may persist, these indicators suggest that Ethereum's correction could be a temporary pause before a broader market reversal into the $4,100-$4,200 range predicted by analysts.
Cover image by ChatGPT, ETHUSD chart by Tradingview
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