Ethereum is under great pressure as the broader crypto market enters the corrective phase. After hitting a new all-time high of around $4,950 on August 24th, ETH is now waving more than 22% of its value, below the psychological $4,000 level. The sudden pullback leaves many investors in difficult positions, and some of the biggest players in the market are also feeling the impact.
Even Bitmine, one of Ethereum’s biggest institutional owners, has seen its ETH position below its on-chain cost base, according to top analyst Maartunn. This marks a critical moment, as whales usually act as stabilizers during corrections and their unrealized losses reflect the current depth of market stress.
Despite this recession, some analysts have argued that Ethereum retracement could represent a healthy reset after weeks of overheating momentum. This scale correction is not uncommon following parabolic gatherings, but often shakes excessive leverage before setting up for long-term stability. Still, sentiment is fragile, and the installation of sales pressures will test key support levels and investor monitoring confidence closely for new indications, so the upcoming days will be crucial for ETH.
Bitmine’s ETH play is below the cost base
According to top analyst Maartunn, the revision of Ethereum has put one of the largest institutional holders in the market under great pressure. Bitmine’s ETH portfolio, valued at around $7.5 billion, just fell below the on-chain cost base at the $4,000 level. The development highlights the severity of the recent recession, and emphasizes that even large players are not affected by correctional pain.
Maartunn emphasizes that this stage of the market is not about endurance and lack of perfect entry or timing for exits. As he said, “It’s about who can hold their breath the longest.” This statement reflects broader sentiment among analysts who view the current environment as a psychological test of both retail and institutional investors. When volatility is high and emotions get worse, the ability to withstand drawdowns can determine who will ultimately benefit from the next stage of the Ethereum cycle.
The outlook remains divided. Optimists argue that Ethereum is a necessary pullback before preparing for a higher, larger leg, supported by growing institutional adoption and a strong long-term foundation. On the other hand, cautionary voices warn of deeper fixes and note that if you fall below critical support levels, you can cause even more downsides.
The next few weeks will prove to be decisive. If ETH can stabilize the range of $3,800-$4,000 or more, reliability could return quickly. However, if sales pressures increase, the market could face long-term uncertainty before momentum can be re-established.
The Bulls are struggling to find support
Ethereum (ETH) is below the key level of $4,000, as shown on the 12-hour chart and is currently trading around $3,891. The decline shows a continuing bearish trend that began after its September peaked nearly $4,950. The breakdowns are accompanied by increased trading volume, confirming strong sales pressure, suggesting that the bears currently dominate the market.
The 50-day EMA is below the $4,400 zone, strengthening short-term weaknesses, and the 200-day EMA serves as the next major level of support at around $3,650. Price Action has shown a critical rejection from the $4,600-4,800 resistance range earlier this month, followed by a sudden sell-off that erases more than 20% of the value of ETH.
If the ETH is above the $3,850-$3,900 zone, it could attempt a rebound and retry a $4,200 resistance. However, if we fail to adhere to this range, there is an even more negative risk towards $3,650-3,700, when the 200-day EMA and previous accumulation levels converge.
Ethereum is in the corrective phase, but volume spikes suggest potential fatigue for the seller. Future sessions will determine whether the Bulls can regain $4,000 to stabilize momentum, or whether further surrender will be ahead.
Dall-E special images, TradingView chart
