Ethereum (ETH) remains under significant bearish pressure, trading around $3,710 after falling 4.5% in the past 24 hours.
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The asset has been struggling to sustain its uptrend, falling below the $3,800 level and testing the key support zone at $3,715. Analysts note that this level has been retested multiple times since October, making it a key battleground between bullish and bearish sentiment.
Technical indicators such as the Relative Strength Index (RSI) and MACD are showing weakening momentum, suggesting that sellers are still in control. A decisive close below $3,680 could expose ETH to even bigger losses towards $3,550 and even $3,500.
However, a rebound from this level could allow buyers to target the resistance zones around $3,920 and $4,000. Interestingly, despite the short-term bearish trend, Ethereum’s broader chart structure has formed a descending wedge pattern, and this setup often precedes a bullish reversal.
ETH's price records small losses on the daily chart. Source: ETHUSD on Tradingview
Ethereum (ETH) on-chain data signals accumulate despite downward trend
While technical analysis paints a cautious picture, on-chain activity reveals signs of potential strength.
According to data from Glassnode and Sentora, over $600 million of ETH was withdrawn from exchanges in just one week. This mass outflow often signals accumulation as investors move their holdings into cold wallets for long-term storage.
Supporting this view, Ethereum’s MVRV ratio, a key valuation metric that compares market value to realized value, currently stands at 1.50, a level historically associated with market equilibrium before major uptrends.
Notably, staked Ethereum maintains an even higher MVRV of 1.7, suggesting that long-term holders are confident in ETH’s recovery. With 36.1 million ETH staked, almost one-third of the total supply, the data highlights decreasing selling pressure and increasing resilience of the network.
Stablecoin prices soar and trust in institutional investors prepare for rebound
Beyond price fluctuations, the Ethereum ecosystem continues to expand. In October, stablecoin trading volume on the network hit a record $2.82 trillion, a 45% month-on-month increase due to yield farming and institutional liquidity management.
Analysts are interpreting this as a sign of capital turnover rather than an exit from the market, with traders keeping their funds in stablecoins while waiting for favorable conditions to re-enter ETH positions.
Institutional investor inflows into Ethereum-based products are also expected to exceed $15 billion in 2025, reflecting steady confidence in Ethereum’s long-term role in decentralized finance (DeFi) and payments.
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Although short-term volatility is likely to continue, these indicators suggest that Ethereum’s correction could be a temporary respite before a broader market reversal towards analysts’ expected $4,100-$4,200 range.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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