Ethereum (ETH) remains under pressure, trading below $4,000 as bulls try to regain control after weeks of post-crash uncertainty. The edged sell-off that took place on October 10 not only emptied leveraged positions in the market, but also disrupted the uptrend that ETH had been building throughout the summer.
Since then, price movements have moderated and momentum has shifted to the downside, raising concerns among analysts that a deeper correction could occur if buyers fail to defend key demand levels in the coming days.
Despite these technical challenges, on-chain and institutional flow data tell a different story beneath the surface. Enormous-scale investors – including funds, corporate entities, and crypto institutions – continue to accumulate ETH during the drawdown.
The divergence between price weakness and institutional accumulation creates a key setup for Ethereum. If ETH manages to stabilize and regain the $4,000 threshold, it could trigger bullish momentum again. However, failure to maintain support could open the door to further declines before a sustained recovery emerges.
Bitmine adds ETH as institutional accumulation increases
According to data tracked by Lookonchain, institutional player Bitmine continued its aggressive accumulation strategy. Purchased 44,036 ETH – worth approximately $166 million – during the recent market crash.
This purchase brings Bitmine’s total holdings to approximately 3.16 million ETH, worth approximately $12.15 billion, strengthening the company’s position as one of the largest holders of Ethereum in the world. Such high purchasing activity during periods of price weakness highlights a clear discrepancy between institutional behavior and short-term market sentiment.
While retail investors and leveraged participants may be shocked by Ethereum’s inability to reclaim the $4,000 level, long-term buyers appear unfazed. For them, price declines are an accumulating opportunity rather than a cause for concern.
This duality is becoming more and more evident in the market: spot inflows, exchange outflows and whale accumulation rates indicate growing long-term confidence, even if the chart reflects volatility and downward pressure.
This discrepancy highlights a familiar pattern in the structure of the cryptocurrency market. Price action often lags fundamentals, particularly during transition phases when macro catalysts and liquidity developments are still under review. Ethereum remains structurally supported by growing institutional participation, growing demand for staking and the development of Layer 2 ecosystems – all of which strengthen its long-term investment thesis.
Ethereum is testing key support
Ethereum (ETH) is trading around $3,847, testing a critical support zone after failing to hold above $4,000 and rejecting the $4,200 resistance area earlier in the week.
The daily chart shows ETH breaking below the 50-day (blue) and 100-day (green) moving averages, signaling weakening momentum and a shift towards a more defensive market stance. This breakdown puts increased pressure on bulls to defend the $3,800 region – a level that has repeatedly acted as a turning point over the past two months.
If ETH loses this support, the next significant demand zone will be near $3,500, followed by a 200-day moving average near $3,200, which will serve as a deeper structural retest within the long-term uptrend. For now, however, ETH remains above its long-term trendline, which means the broader bullish structure remains intact despite the short-term weakness.
On the other hand, bulls need to reclaim $4,000 and then $4,150-$4,200 to revive bullish momentum and break the series of lower highs that have been forming since September. Until that happens, price action favors consolidation and caution. With macro changes underway and institutional accumulation increasing, Ethereum’s chart suggests a wait-and-see phase where maintaining support becomes crucial before any renewed attempt at growth.
Featured image from ChatGPT, chart from TradingView.com
