Ethereum has managed to regain the $3,000 mark following a period of excessive selling pressure, yet this recovery is tinged with uncertainty. As the market grapples with a prevailing sentiment of fear, retail traders exhibit a notable lack of confidence in the cryptocurrency’s trajectory.
Market analysts are voicing concerns that the bulls are starting to relinquish control, with some predicting the onset of a bear market. Currently, Ethereum is trading nearly 40% below its all-time high from last August, casting a shadow on any upward movements and leaving the broader market environment unsettled.
However, in a remarkable contrast, large investors continue to accumulate ETH, displaying a resolve that stands at odds with the bearish mood engulfing many retail investors. According to recent insights from Lookonchain, Bitmine has been persistently amassing Ethereum during this downturn, defying the general trend and demonstrating a commitment to its accumulation strategy.
Bitmine Intensifies Accumulation of Ethereum
Recent reports from Lookonchain indicate that Bitmine has ramped up its aggressive acquisition tactics, securing an additional 14,618 ETH—valued at approximately $44.34 million—just hours ago. This newfound acquisition strengthens Bitmine’s significant Ethereum portfolio, now totaling approximately 3.436 million ETH. At current market valuations, their holdings amount to around $10.39 billion, showcasing their unwavering belief in Ethereum’s long-term potential amid the ongoing volatility.
This level of accumulation from a major entity contrasts sharply with the overall market sentiment where fear and uncertainty continue to dominate. Retail investors remain tentative, and analysts argue that Ethereum’s inability to sustain itself above the $3,000 resistance level signals a weakening trend.
Yet, Bitmine’s unyielding purchases suggest a divergent perspective—one that sees intrinsic value rather than the turmoil of short-term fluctuations. This behavior is characteristic of disciplined large buyers who often seize the opportunity to accumulate when prices are discounted, hinting at expectations of an appreciation in value in the weeks to come.
Nevertheless, for Ethereum to fully leverage this institutional confidence, it must establish greater stability and build a robust support structure. The upcoming weeks will be crucial in determining whether the sustained demand from these large players can counteract the prevailing selling pressures and facilitate a breakout from its current downtrend.
Ethereum’s Struggles for Momentum Continue
As Ethereum strives for recovery post-sustained sell-offs, it faces significant hurdles in its attempt to solidify above the $3,000 mark. ETH has bounced back from a recent low around the mid-$2,600 range, where a congregation of demand emerged to halt the steep decline.
Despite this upswing, Ethereum lingers below all three major moving averages—the 50-day, 100-day, and 200-day—which are now presenting formidable resistance zones. The downward trajectory of the 50-day SMA and its intersection below the 100-day SMA suggest a deteriorating market structure, while the 200-day SMA hovers just above current prices, reinforcing ETH’s precarious position.
The price action remains turbulent, with consistent lower highs following the peak in early October, reflecting persistent bearish pressures. Volume patterns further corroborate this cautious landscape; the recent rebound saw only a modest uptick in buying activity, significantly lower than the selling volumes witnessed during the November capitulation.
For Ethereum to instigate a meaningful trend reversal, it must break above the $3,300–$3,400 resistance range, reclaim its moving averages, and establish a higher low, paving the way for potential recovery.
