Ethereum Tests Critical $2,900 Support, Bitmine Accumulates 4 Million ETH Amid Weakening Market Structure
As of Wednesday, Ethereum is trading at $2,944. It is under a lot of technical pressure because it couldn't keep going beyond the important
Quick overview
- Ethereum is currently trading at $2,944, facing technical pressure after failing to surpass the $3,000 mark.
- Bitmine has reached a milestone by accumulating over 4 million ETH, reflecting institutional confidence in Ethereum's long-term potential.
- Recent exchange flow data indicates deteriorating liquidity conditions, with significant drops in inflows on major platforms.
- Technical analysis suggests Ethereum may face further downside risk if it cannot maintain support around $2,880.
As of Wednesday, Ethereum ETH/USD is trading at $2,944. It is under a lot of technical pressure because it couldn’t keep going beyond the important $3,000 mark. The second-largest cryptocurrency by market capitalization has dropped 1.4% in the last 24 hours, even if institutions are still buying it. This has led analysts to question whether bulls can hold important support levels or if more losses are on the way.
Bitmine’s Aggressive Accumulation Strategy Reaches New Milestone
Price activity is still modest, but last week Ethereum treasury business Bitmine reached a big milestone: it now has more than 4 million ETH after buying it for $40.61 million. Lookonchain, a company that does on-chain analytics, said that the company bought 13,412 tokens on Monday. This brought the total number of Ethereum tokens the company has bought over the past week to almost 100,000, with an average price of $2,991 per token.
Bitmine’s current assets are worth about $12.2 billion, which is 67% of the way toward the company’s goal of controlling 5% of all Ethereum. Chairman Tom Lee said that achieving the 4 million token mark within five and a half months after the plan started shows that people really believe in Ethereum’s long-term potential. The company’s stock has gone up 606% in the last six months, showing that investors are excited about this focused bet on digital assets.
Bitmine hopes to add staking features to its Made in America Validator Network (MAVAN) in early 2026. This will help the company make more money on its huge position while it continues to build it up. This commitment from institutions goes against the bearish technical signs that are currently driving short-term market activity.
ETH Exchange Flow Data Reveals Deteriorating Liquidity Conditions
Recent study of exchange inflow patterns shows troubling changes in how the market works. According to CryptoQuant, Coinbase saw a total of almost $21 billion in Bitcoin and Ethereum inflows over seven days on November 24. By December 21, however, that number had dropped to just $7.8 billion, a drop of more than 60%. Binance, on the other hand, saw a less dramatic reduction in inflows, going from $15.3 billion to $10.3 billion over the same time period.
This difference shows that trade has moved to platforms that focus on short-term positioning and aggressive risk management, while overall liquidity has gotten a lot tighter. Ethereum is working in a limited, range-bound environment where both buyers and sellers are less urgent. This is shown by the fact that prices don’t change much even while capital flows are down.
ETH/USD Technical Breakdown Points To Further Downside Risk
From a technical point of view, Ethereum is under more and more pressure after being turned down at the $3,017 daily resistance level on Monday. The commodity fell below a rising channel with support at $2,980 and is now trading below its 100-hourly simple moving average, which shows that bearish momentum is building in the short run.
The Relative Strength Index is at 44, which is below the neutral 50 level. The MACD lines are getting closer together, which means traders are unsure. The 61.8% Fibonacci retracement level of the recent rise from $2,775 to $3,075 is where immediate support is at $2,880. If this zone doesn’t hold, there might be further selling toward $2,845 and maybe even $2,800. If the price goes down considerably more, it could go down to $2,749 or possibly $2,720.
Ethereum Price Outlook: Critical Support Test Ahead
Ethereum has to close above $3,017 every day for bulls to get back in charge. This would open the way for a comeback toward the December 10 high of $3,447. But the way things are set up right now, bears are more likely to win in the short run, especially if the price can’t hold the $2,880-$2,900 support cluster.
Ethereum may test lower support levels before finding a foundation for a new rise since technical indicators are getting weaker, exchange inflows are falling, and it can’t go back above major moving averages. Traders need to keep a careful eye on the $2,880 level because a breakdown could make selling pressure stronger and push the decline into the last days of 2024.
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