Ethereum (ETH) remains under notable bearish pressure, trading around $3,710 after falling 4.5% over the past 24 hours.
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The asset struggled to maintain its uptrend, falling below the $3,800 level and testing the critical $3,715 support zone. Analysts note that this level has been retested several times since October, serving as a key battleground between bullish and bearish sentiments.
Technical indicators such as the Relative Strength Index (RSI) and MACD show weakening momentum, suggesting that sellers remain in control. A decisive close below $3,680 could expose ETH to larger losses up to $3,550 or even $3,500.
However, a rebound from this level could allow buyers to target resistance zones near $3,920 and $4,000. Interestingly, despite the short-term bearish tone, Ethereum’s broader chart structure forms a falling wedge pattern, a pattern often preceding a bullish reversal.
ETH's price records small losses on the daily chart. Source: ETHUSD on Tradingview
Ethereum (ETH) On-Chain Data Signals Buildup Despite Downtrend
While technical data paints a cautious picture, on-chain activity reveals signs of underlying strength.
According to data from Glassnode and Sentora, more than $600 million worth of ETH was withdrawn from exchanges in just one week. This mass exodus is often a sign of accumulation, with investors moving their holdings to cold wallets for long-term storage.
Supporting this view, Ethereum’s MVRV ratio, a key valuation metric comparing market value to realized value, currently stands at 1.50, a level historically associated with market equilibrium before major uptrends.
Notably, staked Ethereum maintains an even higher MVRV of 1.7, suggesting that long-term holders are confident in ETH’s recovery. With 36.1 million ETH staked, representing nearly a third of the total supply, the data highlights reduced selling pressure and increasing network resilience.
Stablecoin Rise and Institutional Confidence Prepare for Rebound
Beyond price action, Ethereum’s ecosystem continues to grow. October saw a record $2.82 trillion in stablecoin trading volume on the network, a 45% month-over-month increase, driven by yield farming and institutional liquidity management.
Analysts interpret this as a sign of capital turnover rather than exit from the market, with traders placing their funds in stablecoins while waiting for favorable conditions to re-enter ETH positions.
Institutional flows into Ethereum-based products also exceeded $15 billion in 2025, reflecting continued confidence in Ethereum’s long-term role in decentralized finance (DeFi) and payments.
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While near-term volatility may persist, these metrics suggest that Ethereum’s correction could be a temporary pause before a broader market reversal toward the $4,100-$4,200 range predicted by analysts.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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