Ethereum has come under heavy selling pressure over the past few days as the broader crypto market entered a deep correction phase. Yet despite the volatility and widespread fears, ETH has managed to hold firmly above the key $3,000 level – an area that many analysts see as key to maintaining a broader bullish structure.
Now, as prices stabilize and buyers begin to reappear, several market observers are beginning to make the case for a possible recovery, arguing that Ethereum may be nearing the end of its downturn.
The continued buildup of major players, including Tom Lee’s Bitmine, adds fuel to this narrative. Tom Lee – a well-known Wall Street strategist, co-founder of Fundstrat Global Advisors and longtime Bitcoin and Ethereum bull – has been one of the most influential voices in the digital assets market for almost a decade. His company Bitmine operates as a large institutional crypto investment entity focused on long-term accumulation, market making, and strategic positioning in times of fear.
According to recent on-chain data, Bitmine continued to purchase ETH even as prices fell, signaling strong conviction in the asset’s long-term prospects. This behavior stands in stark contrast to the broader market, where short-term holders have capitulated.
Bitmine continues to accumulate ETH despite market weakness
According to new on-chain data from Lookonchain, accumulation activity around Ethereum is far from slowing down. A newly reported wallet, 0xE2ed, believed to be associated with Tom Lee’s Bitmine, received 21,054 ETH (worth $66.57 million) from Kraken just a few hours ago. The move reinforces the idea that large, sophisticated players are treating the recent correction as an opportunity rather than a threat.
The timing of this transfer is remarkable. Ethereum has been under sustained selling pressure for weeks, with sentiment turning sharply bearish as the market grapples with fear, liquidations and a broader rotation into stablecoins. Yet despite this environment, Bitmine-related wallets continue to aggressively absorb supply.
This model aligns with Bitmine’s broader strategy: accumulating high-quality crypto assets during periods of uncertainty to position itself for long-term upside. Large flows into accumulation portfolios during withdrawals have historically suggested strong conviction on the part of institutional players, often preceding phases of recovery and renewed vigor.
Let’s assume that this wallet is indeed linked to Bitmine. In this case, it indicates that some of the most well-capitalized players in the market remain confident in the long-term value of Ethereum, regardless of short-term volatility.
ETH Price Analysis: Testing Long-Term Support Amid High Volatility
Ethereum’s weekly chart shows the asset navigating a critical zone as the price hovers just above $3,000, a level that has historically been a major demand zone. After weeks of sustained selling pressure, ETH has pulled back from the $4,500 region and is now retesting its long-term moving averages. The 200-week MA, in particular, is positioned closely below the current price, acting as a structural anchor that has supported Ethereum through previous cycle corrections, including the deep capitulation seen in mid-2022 and the recovery phase of 2023.
Recent candle structure reflects increased volatility, with long wicks suggesting strong reactions from buyers near the $3,000 threshold. Volume has increased slightly during this downturn, indicating active participation from both sellers locking in profits and buyers positioning themselves for a potential reversal. Still, ETH remains below its 50-week moving average, showing that short-term momentum continues to lean towards a downtrend.
Nonetheless, the broader trend resembles pullbacks from the previous cycle, where Ethereum retraced sharply before forming higher lows and resuming its macro uptrend. If ETH can maintain this support band and reclaim the $3,300-$3,500 region, it could signal renewed strength. But a weekly close below $3,000 risks opening the door to deeper correction targets near $2,700.
Featured image from ChatGPT, chart from TradingView.com
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