Ethereum has regained the $3,000 level after weeks of heavy selling pressure, but the recovery remains fragile as momentum continues to fade. The market is still dominated by fear and the confidence of retail traders has weakened significantly.
Analysts are warning that bulls are losing control of the trend and some are beginning to talk about the early stages of a potential bear market. With Ethereum trading nearly 40% below its August all-time high, every upward move is met with hesitation and the broader market environment has yet to stabilize.
Despite this uncertainty, large players continue to accumulate ETH, providing a contrasting signal to the prevailing bearish sentiment. According to new data from Lookonchain, Bitmine has been steadily buying Ethereum during this downturn, showing no signs of slowing its accumulation strategy.
This continued interest from large holders suggests that institutional and wealthy buyers may still see long-term value at current levels, even if short-term traders remain cautious.
Bitmine deepens accumulation as Ethereum struggles to gain momentum
Lookonchain reports that Bitmine continued its aggressive accumulation strategy, purchasing an additional 14,618 ETH, worth approximately $44.34 million, a few hours ago. This new acquisition further strengthens Bitmine’s already massive position on Ethereum, which now totals 3.436 million ETH. At current prices, their holdings are valued at approximately $10.39 billion, underscoring their long-term conviction despite the current market turmoil.
This level of accumulation from a major player stands in stark contrast to the general sentiment in the market, where uncertainty and fear persist. Retail investors remain cautious and many analysts say Ethereum’s inability to regain momentum above $3,000 signals a weakening trend.
However, Bitmine’s continued purchases suggest a fundamentally different outlook, one rooted in long-term valuation rather than short-term volatility.
Disciplined large buyers often accumulate during market weakness, viewing discounted prices as strategic entry points. Bitmine’s behavior reflects this trend and could indicate expectations of higher prices in the coming months.
Nonetheless, for Ethereum to benefit from this institutional trust, it must stabilize and build a stronger base of support. The coming weeks will reveal whether this sustained whale demand will outpace broader selling pressure and help ETH break out of its current downtrend.
ETH tries to recover but faces strong resistance
Ethereum is attempting to recover after weeks of sustained selling pressure, reclaiming the $3,000 level but still struggling to build significant momentum. The chart shows that ETH is rebounding from the recent low near $2,600, where a group of demand emerged and halted the sharp decline.
However, despite this rebound, Ethereum remains below the three major moving averages – 50-day, 100-day and 200-day – which now act as layered resistance zones.
The 50-day SMA is trending downward and has already moved below the 100-day SMA, signaling a weakening in market structure. Meanwhile, the 200-day SMA sits slightly above current prices, reinforcing the idea that ETH is still in a vulnerable position. Price action remains volatile, with lower highs forming steadily since the early October peak, reflecting continued bearish control.
Volume trends also confirm this cautious picture. Although the recent rebound was accompanied by a slight increase in purchasing activity, this remains well below the sales volume seen during the November capitulation. For a significant trend reversal, ETH needs to surpass the $3,300-$3,400 region, reclaim its moving averages, and establish a higher low.
Featured image from ChatGPT, chart from TradingView.com
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