Ethereum is struggling to maintain the $2,800 level after a brutal correction that has lost more than 45% of its value since delayed August. The keen decline has resulted in a decidedly bearish market sentiment, with many traders fearing that ETH has entered a long-term downtrend. Bulls are struggling to establish a credible level of support, and the lack of a powerful response from the buying side so far has only deepened the uncertainty. Liquidity on major exchanges continues to decline, reinforcing the narrative that the market is still deep in risk-off phase.
However, despite ponderous sales pressure and unsatisfactory pricing performance, not all major players are pulling out. In fact, some of them double in size. Fresh on-chain data from Lookonchain reveals that Tom Lee’s Bitmine – a well-known cryptocurrency-focused investment operation – continues to aggressively purchase ETH at current prices. Bitmine was one of the few entities that consistently strengthened its position during the downturn, signaling a powerful belief that Ethereum remains undervalued in the long run.
This disconnect between retail fear and whale accumulation is becoming more and more noticeable. As ETH hovers around a critical psychological level, the coming days may determine whether this whale’s confidence translates into broader market stabilization or remains an isolated bet against the prevailing trend.
Aggressive Bitmine accumulation signals confidence
According to Lookonchain, Tom Lee’s Bitmine is still aggressive accumulationpurchasing another 28,625 ETH worth $82.11 million. The move reinforces a growing narrative that some of the market’s most advanced players expect a rebound despite prevailing fear and continued selling pressure. Immense-scale buying during deep corrections has historically coincided with early reversal zones, and Bitmine’s belief adds weight to the idea that Ethereum may be approaching a significant inflection point.
However, economic recovery is by no means guaranteed. ETH remains trapped near the $2,800 zone, a level that has been a delicate line of defense during the crisis. For a change in dynamics to occur, Ethereum must not only hold this area, but also regain the $3,000 mark, which is currently in an significant resistance zone. A decisive move above this level would mean that buyers are finally returning with their strength, potentially setting the stage for a broader trend reversal.
Until then, the situation remains exquisite. Bitmine accumulation offers a bullish signal, but without confirmation from the price structure, Ethereum continues to teeter on a tightrope. Failure to maintain current levels could trigger another wave of capitulation, but stability in this range could trigger a rebound that whales seem impatient for.
Testing the main weekly support zone
Ethereum’s weekly chart shows that the asset is trading in a critical support zone after a keen drop from the $4,800 region. The price is now back to around $2,800, a level closely aligned with the 200-week moving average – a historically significant area where ETH has often found long-term support. This zone has previously acted as a staging point during major market changes in both 2022 and mid-2023, making its defense critical to maintaining broader structural strength.
The recent run below the 50- and 100-week moving averages underscores the intensity of the current sell-off. In recent weeks, the momentum has clearly shifted in favor of the bears, with several vast red candles confirming the aggressive distribution. However, ETH’s current attempt to stabilize above the 200-week MA signals that buyers are finally stepping in, preventing a deeper decline towards $2,400.
If Ethereum can hold above this support area and reclaim the psychological $3,000 level, a recovery structure could begin to form. However, if the 200-week MA breaks convincingly, the market could face a more prolonged correction.
Featured image from ChatGPT, chart from TradingView.com
