Ethereum (ETH) is trading at a critical juncture after regaining the $3,450 level and showing early signs of stabilization following several weeks of volatility. While the bulls are slowly recovering, upward momentum remains fragile as traders wait for confirmation of a sustained breakout. The recent rebound has sparked renewed optimism, but Ethereum still faces significant resistance in the $3,600-$3,700 range. This area should be recaptured to confirm a wider trend reversal.
According to CryptoQuant, institutional sentiment remains mixed. The analytics firm reports that Bitmine, one of the major Ethereum market players, currently holds $1.8 billion in ETH reserves. Despite these unrealized losses, the company continues to accumulate, suggesting that large players maintain long-term confidence in Ethereum’s trajectory.
The next few days could be decisive for cryptocurrency markets as the U.S. government reopens the economy and restores the flow of important macroeconomic data. These changes may impact investor sentiment and liquidity conditions across digital assets. For Ethereum, maintaining support above $3,400 while reclaiming higher levels is essential to maintain upward momentum. A favorable macro backdrop and continued whale accumulation could set the stage for ETH’s next major move.
Bitmine continues to accumulate Ethereum despite massive unrealized losses.
Top analyst Maartunn shared a chart showing changes in Bitmine’s Ethereum balance, revealing surprising trends amid market uncertainty. Despite its holdings reaching $1.8 billion, Bitmine continues to accumulate aggressively, adding over 70,000 ETH since early November. This steady accumulation, even during the correction phase, signals long-term confidence in Ethereum’s fundamental principles and future growth potential.
Bitmine’s actions contrast with broader market sentiment, with traders remaining cautious as they navigate volatility and changing macroeconomic signals. The recent U.S. government shutdown and delays in key regulatory decisions have led many investors to reduce their exposure, creating short-term hesitation across the cryptocurrency industry. However, institutional players like Bitmine appear to be using this environment as an opportunity to build positions at discounted prices.
Historically, this build-up during periods of uncertainty often precedes a significant rebound once confidence is restored. As macro conditions stabilize and risk appetite improves, Ethereum could benefit from the fundamental strength that large holders have quietly built.
While near-term volatility remains, the continued accumulation of companies like Bitmine suggests market fundamentals are strengthening and hints at a potential recovery phase in the coming weeks.
ETH Tests Long-Term Support as Bulls Defend the $3,400 Area.
Ethereum’s weekly chart shows the asset holding above an important support area near $3,400, a level consistent with the 50-week moving average (blue line). After weeks of sustained selling pressure, ETH appears to have stabilized, indicating that buyers may step in to defend this key range.
The broader structure suggests that Ethereum is in a long-term upward trend, with the 100-week (green) and 200-week (red) moving averages continuing to rise. This is a sign that despite recent volatility, the macro direction of the market remains intact. The recent decline, which occurred after being rejected near $4,400, is similar to previous mid-cycle corrections where the price retraced its key moving averages before resuming its upward trend.
Currently, the $3,400-$3,300 area serves as the main support area, while the $3,700-$3,900 area is the next resistance area to watch. A weekly close above this range could confirm new bullish momentum and pave the way for $4,200-$4,500. Conversely, a decline below $3,300 could trigger a larger correction towards $2,900.
Featured image from ChatGPT, chart from TradingView.com
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