Ethereum lost the $3,000 mark and has not been able to regain it for days, reinforcing growing fears that the market could enter a deeper correction phase. Selling pressure continues to build as traders unwind positions and sentiment shifts toward caution.
The broader crypto market is also weakening, reinforcing speculation that a bear market could form sooner than expected. Fear and uncertainty now dominate social metrics, derivatives data and spot flows, with investors wondering if ETH has already reached its cycle high. However, despite the pessimism and the deterioration of the price structure, not all players are backing down. In fact, some of the biggest players in the market are accumulating aggressively.
New data from Lookonchain reveals that Tom Lee’s Bitmine purchased 69,822 ETH worth $197.25 million last week alone. This brings their total holdings to 3,629,701 ETH, worth approximately $10.25 billion.
Bitmine faces huge unrealized losses as market awaits direction
According to a press release from Bitmine, the company’s average purchase price is around $3,997, leaving its position with an unrealized loss of approximately $4.25 billion at current market levels. This disclosure highlights the depth of conviction behind Bitmine’s accumulation strategy, but it also highlights the extent to which Ethereum has retraced its movement from its recent highs. The continued decline reflects the broader uncertainty gripping the market, where fear and hesitation dominate dynamics and liquidity remains low.
The market is now entering a critical phase that could define price behavior for months to come, as traders evaluate whether ETH can stabilize and begin to regain lost ground. Many analysts say that despite the strong retracement, Ethereum remains positioned for a recovery, especially if macroeconomic conditions improve and selling pressure eases. They point out that historically, similar periods of aggressive whale accumulation during times of market weakness have preceded strong rallies and renewed investor confidence.
However, others warn that if ETH fails to regain momentum above key psychological levels, further declines could worsen. This moment therefore became a dividing line between bullish expectations and bearish caution.
Ethereum Price Action Shows Weak Recovery Attempts Amid Bearish Structure
Ethereum’s price action on the daily chart continues to reflect a market struggling to regain bullish momentum after losing the $3,000 level. The recent rebound towards $2,900 shows a temporary reaction, but the broader structure remains bearish as ETH trades below the 50, 100, and 200 day moving averages.
This alignment of moving averages – the fastest averages being positioned below the slowest averages – confirms a sustained downward trend that has been developing since early October.
The chart also shows falling highs and falling lows, reinforcing the fact that buyers have not yet regained control. Volume spikes during selloffs indicate that bearish activity drives market movement more than accumulation. Despite brief rallies, each upside attempt was rejected near resistance around the $3,150-$3,250 range, suggesting sentiment remains fragile.
Additionally, the red 200-day moving average near the $3,500 area is now a critical long-term threshold. If ETH fails to reclaim this region in the coming weeks, the likelihood of continued consolidation or an even deeper correction increases.
For now, Ethereum remains in a vulnerable position, requiring stronger demand to reverse the trend in favor of the bulls.
Featured image from ChatGPT, chart from TradingView.com
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