Ethereum (ETH) is at a critical juncture after regaining the $3,450 level, showing early signs of stabilization after weeks of volatility. Although the bull market is slowly regaining ground, upward momentum remains fragile as traders wait for confirmation of a sustained breakout. Although the recent rally has reignited optimism, Ethereum still faces significant resistance around the $3,600-$3,700 range, and this zone needs to be regained to confirm a broader trend reversal.
According to CryptoQuant, institutional investor sentiment remains mixed. Bitcoin, one of the major Ethereum market participants, currently has $1.8 billion in unused ETH, according to a report from an analytics firm. Despite these unrealized losses, the company continues to add, suggesting that large companies maintain long-term confidence in Ethereum’s orbit.
The next few days could be decisive for crypto markets as the US government reopens and the flow of important macroeconomic data resumes. This change could impact investor sentiment and the overall liquidity situation of digital assets. For Ethereum, maintaining support above $3,400 while reclaiming higher levels is essential to maintain bullish momentum. A favorable macro environment and sustained whale accumulation could set the stage for ETH’s next big move.
Bitmine continues to accumulate Ethereum despite having large unrealized losses
Top analyst Martun shared a graph showing the evolution of Bitcoin’s Ethereum balance, revealing a surprising trend amid market uncertainty. Despite holding $1.8 billion in assets, Bitmine continues to accumulate aggressively, adding over 70,000 ETH since the beginning of November. This steady accumulation shows long-term confidence in Ethereum’s fundamentals and future growth potential, even in a correction phase.
Bitmine’s actions contrast with broader market sentiment, which remains cautious as traders grapple with volatility and changing macroeconomic signals. The recent US government shutdown and delays in major regulatory decisions have caused many investors to reduce their exposure, creating short-term hesitation across the crypto industry. However, institutional investors like Bitmine appear to be using this environment as an opportunity to build positions at a discount.
Historically, such buildup during periods of uncertainty often precedes a significant rebound after confidence returns. Once macro conditions stabilize and risk appetite improves, Ethereum could benefit from the fundamental strength that is being quietly built by large holders.
Although the potential for short-term volatility remains high, continued accumulation by entities like Bitmine suggests that the market’s fundamentals are strengthening, suggesting a possible recovery phase in the coming weeks.
ETH tests long-term support as Bulls defend $3,400 zone
Ethereum’s weekly chart shows the asset holding above a key support zone around $3,400, a level that coincides with the 50-week moving average (blue line). After several weeks of consistent selling pressure, ETH appears to be stabilizing, indicating that buyers may step in to protect this important range.
The broader structure suggests that Ethereum is in a long-term uptrend, with the 100-week (green) and 200-week (red) moving averages continuing their upward trend. This shows that despite the recent volatility, the market’s macro direction is still intact. The recent pullback following a rejection near $4,400 is similar to previous mid-cycle corrections where prices retreated to major moving averages before resuming an uptrend.
At the moment, the $3,400-3,300 area serves as the primary support zone, and $3,700-3,900 serves as the next resistance level. A weekly close above that range could confirm the bullish momentum again and pave the way for $4,200-$4,500. Conversely, a breakdown below $3,300 could trigger a deeper correction towards $2,900.
Featured image from ChatGPT, chart from TradingView.com
