Ethereum (ETH) is trading at a crucial time after reclaiming the $3,450 level, showing the first signs of stabilization after weeks of volatility. While the bulls are slowly regaining ground, the bullish momentum remains fragile as traders await confirmation of a lasting breakout. The recent rebound has sparked renewed optimism, but Ethereum still faces significant resistance around the $3,600-$3,700 range – an area that needs to be reclaimed to confirm a broader trend reversal.
According to CryptoQuant, institutional sentiment remains mixed. The analytics firm reports that Bitmine, one of the major players in the Ethereum market, is currently $1.8 billion underwater in its ETH holdings. Despite these unrealized losses, the company continues to accumulate, suggesting that big players maintain long-term confidence in Ethereum’s trajectory.
The next few days could prove decisive for the crypto market with the US government reopening, restoring the flow of critical macroeconomic data. This change could influence investor sentiment and liquidity conditions for digital assets. For Ethereum, maintaining support above $3,400 while reclaiming higher levels will be key to maintaining bullish momentum. Favorable macroeconomic backdrop and persistent whale accumulation could pave the way for ETH’s next major move.
Bitmine continues to accumulate Ethereum despite heavy unrealized losses
Leading analyst Maartunn shared a chart showing Bitmine’s Ethereum balance change, revealing a surprising trend amid market uncertainty. Despite being $1.8 billion underwater, Bitmine continues to accumulate aggressively – adding over 70,000 ETH since early November. This consistent accumulation, even during a correction phase, demonstrates a long-term belief in Ethereum’s fundamentals and its potential for future growth.
Bitmine’s behavior contrasts with general market sentiment, which remains cautious as traders deal with volatility and changing macroeconomic signals. Many investors have reduced their exposure following the recent US government shutdown and delays in key regulatory decisions, creating short-term hesitancy in the crypto space. Yet institutional players like Bitmine appear to be using this environment as an opportunity to build positions at discounted prices.
Historically, such accumulation during times of uncertainty often precedes significant rebounds once confidence returns. If macroeconomic conditions stabilize and risk appetite improves, Ethereum could benefit from the underlying strength quietly built by large holders.
While short-term volatility remains likely, the continued accumulation of entities like Bitmine suggests that the market foundations are strengthening, pointing to a potential recovery phase in the coming weeks.
ETH tests long-term support as bulls defend $3,400 zone
Ethereum’s weekly chart shows the asset holding above a critical support zone near $3,400, a level that coincides with the 50-week moving average (blue line). After several weeks of consistent selling pressure, ETH appears to be stabilizing, signaling that buyers may step in to defend this key range.
The broader structure suggests that Ethereum remains in a long-term uptrend, with the 100-week (green) and 200-week (red) moving averages continuing to move higher – a sign that the market’s macro direction is still intact despite recent volatility. The latest pullback, which follows a rejection near $4,400, resembles previous mid-cycle corrections, during which price returned to key moving averages before resuming its upward trend.
For now, the $3,400-$3,300 area is a major support area, while the $3,700-$3,900 area is the next resistance to watch. A weekly close above this range could confirm renewed bullish momentum and pave the way towards $4,200 – $4,500. Conversely, a break below $3,300 could trigger a deeper correction towards $2,900.
Featured image from ChatGPT, chart from TradingView.com
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