Ethereum has been under heavy selling pressure over the past few days as the broader cryptocurrency market enters a severe correction. However, despite the volatility and widespread fears, ETH held firm to the key level of $3,000. This is an area that many analysts believe is essential to maintaining the broader bullish structure.
Now that prices have stabilized and buyers are starting to emerge again, some market observers have begun calling for a potential recovery, arguing that Ethereum’s slump may be nearing its end.
Adding fuel to this story is the continued build-up of key players, especially Tom Lee’s Bitmine. Well-known Wall Street strategist, co-founder of Fundstrat Global Advisors, and longtime Bitcoin and Ethereum bull Tom Lee has been one of the most influential voices in the digital asset market for nearly a decade. His company, Bitmine, operates as a large-scale institutional cryptocurrency investment firm focused on long-term accumulation, market shaping, and strategic positioning during panic periods.
According to recent on-chain data, Bitmine has continued to purchase ETH despite the price drop, showing strong confidence in the asset’s long-term prospects. This behavior stands in sharp contrast to the broader market, where short-term holders are giving in.
Bitmine continues to accumulate ETH despite market weakness.
Accumulation activity around Ethereum is not slowing down at all, according to the latest on-chain data from Lookonchain. 0xE2ed, a newly flagged wallet believed to be associated with Tom Lee’s Bitmine, received 21,054 ETH (worth $66.57 million) from Kraken just a few hours ago. These moves reinforce the view that large, sophisticated players are treating the recent correction as an opportunity rather than a threat.
The timing of this transfer is noteworthy. Ethereum has been under sustained selling pressure for several weeks, with sentiment turning sharply bearish as the market struggles with fears, liquidations and a widespread rotation into stablecoins. However, despite this environment, Bitmine connected wallets continue to aggressively absorb supply.
This pattern is consistent with Bitmine’s broader strategy of accumulating high-quality cryptocurrency assets over periods of uncertainty to secure long-term upside. Large inflows into accumulated wallets during downturns have historically signaled strong confidence among institutional participants, often outpacing recovery phases and renewed strength.
Let’s assume this wallet is actually connected to Bitmine. In this case, it indicates that some of the most well-capitalized participants in the market are confident in the long-term value of Ethereum regardless of its short-term volatility.
ETH Price Analysis: Testing Long-Term Support Amid High Volatility
Ethereum’s weekly chart shows the asset exploring a critical zone with its price hovering just above $3,000, a level that has historically served as a key demand area. After weeks of sustained selling pressure, ETH has retreated from the $4,500 region and is currently retesting its long-term moving average. In particular, the 200-share MA sits just below the current price, acting as a structural anchor that has supported Ethereum in previous cyclical corrections, including the severe capitulation seen in mid-2022 and the recovery phase in 2023.
The recent candle structure reflects increased volatility. Long wicks suggest a strong reaction from buyers near the $3,000 threshold. There has been a slight increase in trading volume during this recession, indicating active participation from both sellers locking in profits and buyers taking positions for a potential reversal. However, ETH is below its 50-week MA, showing that near-term momentum continues to trend bearish.
Nonetheless, the broader pattern is similar to the earlier cycle decline, where Ethereum made a higher low and then retraced sharply before resuming its macro uptrend. If ETH can hold this support and regain the $3,300-$3,500 region, this could signify renewed strength. However, a weekly close below $3,000 risks opening the door to a deeper correction target near $2,700.
Featured image from ChatGPT, chart from TradingView.com
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