Ethereum is fighting to maintain the $2,800 level after a brutal correction that erased more than 45% of its value since late August. The sharp decline has made market sentiment distinctly bearish, with many traders fearing that ETH has entered a prolonged downtrend. Bulls are struggling to establish a reliable support level, and the lack of a strong reaction from the buyers side so far has only intensified the uncertainty. Liquidity continues to decline on major exchanges, reinforcing the narrative that the market is still immersed in a phase of risk aversion.
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Yet despite strong selling pressure and disappointing price performance, not all major players are backing down. In fact, some people double down. New on-chain data from Lookonchain reveals that Tom Lee’s Bitmine – a well-known crypto-focused investment operation – continues to purchase ETH aggressively at current prices. Bitmine has been one of the few entities to consistently strengthen its position during the economic downturn, reflecting a strong belief that Ethereum remains undervalued in the long term.
This discrepancy between retailer fear and whale stockpiling is becoming increasingly notable. As ETH hovers around a critical psychological level, the coming days could determine whether this whale’s confidence translates into broader market stabilization or remains an isolated bet against the prevailing trend.
Aggressive Bitmine Accumulation Signals Confidence
According to Lookonchain, Tom Lee’s Bitmine continued its aggressive accumulation, purchasing an additional 28,625 ETH worth $82.11 million. The move reinforces the growing narrative that some of the market’s most sophisticated players are preparing for a rebound despite prevailing fear and relentless selling pressure. Large-scale buying during deep corrections has historically aligned with early reversal zones, and Bitmine’s conviction adds weight to the idea that Ethereum could be approaching a significant turning point.
However, recovery is far from guaranteed. ETH remains trapped near the $2,800 zone, a level that has served as a fragile line of defense during this downturn. For momentum to change, Ethereum must not only hold this zone but also reclaim the $3,000 mark, which has now become an important resistance zone. A decisive move above this level would signal that buyers are finally coming back in force, potentially setting the stage for a broader trend reversal.
Until then, the situation remains delicate. Bitmine’s accumulation offers a bullish signal, but without confirmation of price structure, Ethereum continues to walk the tightrope. A failure to maintain current levels could cause another round of capitulation, but stability here could trigger the rebound that the whales seem to be anticipating.
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Testing a Major Weekly Support Zone
Ethereum’s weekly chart shows that the asset is at a critical support zone after a sharp decline from the $4,800 region. The price has now returned to around $2,800, a level that closely matches the 200-week moving average, a historically important area where ETH has often found long-term support. This area previously served as a launchpad during major market reversals in 2022 and mid-2023, making its defense crucial to maintaining broader structural strength.
The recent break below the 50 and 100 week moving averages highlights the intensity of the current sell-off. The momentum has clearly reversed in favor of the bears over the past few weeks, with several large red candles confirming an aggressive distribution. However, ETH’s current attempt to stabilize above the 200-week MA indicates that buyers are finally stepping in, preventing a deeper decline towards $2,400.
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If Ethereum can hold above this support zone and reclaim the psychological $3,000 level, a recovery structure could begin to form. But if the 200-week MA breaks convincingly, the market could face a more prolonged correction.
Featured image from ChatGPT, chart from TradingView.com
