Ethereum (ETH) has experienced a 6.1% decline in the last 24 hours, dropping below the $4,300 mark as bulls struggled to defend the crucial $4,500 resistance level. This downward trend comes despite recent institutional buying activity, with BitMine, led by Tom Lee, acquiring approximately $84 million worth of ETH within a single day. This purchase has boosted BitMine’s ETH holdings to over 2.15 million coins, demonstrating a significant increase in institutional adoption of the cryptocurrency.
BitMine’s aggressive accumulation strategy, carried out in five separate transactions, highlights the growing interest from institutional investors in Ethereum. However, the overall market sentiment remains cautious, with short-term traders continuing to sell into price rallies.
The initial spike in Ethereum’s price above $4,600 following the U.S. Federal Reserve’s announcement of a 25 basis-point rate cut and a softer policy outlook for 2025 was short-lived. Selling pressure intensified as large holders reached unrealized profit levels not seen since 2021, causing the rally to fizzle out quickly.
On-chain data suggests that more ETH is being moved from staking contracts to centralized exchanges, indicating a sense of wariness among whales. Additionally, low network fees point to subdued on-chain demand, reinforcing the bearish sentiment in the short term.
From a technical standpoint, Ethereum’s price action has turned negative after breaking below key moving averages on the two-hour chart. Analysts have observed a bearish Marubozu candle pattern, signaling a potential further downside. The RSI indicator has plunged into oversold territory, suggesting that conditions are stretched but not yet signaling a reversal. Immediate downside targets are identified at $4,242, $4,159, and potentially $4,065 if selling pressure persists.
For bullish momentum to return, Ethereum would need to decisively reclaim the $4,502 level, paving the way for a potential move towards $4,588 and $4,699. Until then, traders are advised to view price rallies as opportunities to enter short positions rather than signs of a recovery.
Despite the short-term challenges, the ongoing institutional accumulation of Ethereum indicates a strong conviction in its long-term growth potential. While the broader cryptocurrency market remains volatile, with Bitcoin and other major altcoins experiencing declines, the upcoming week, marked by Fed Chair Powell’s speech and key U.S. economic reports, could influence Ethereum’s next significant price movement.
In conclusion, Ethereum bulls face a tough road ahead, with the $4,500 level serving as a key resistance. Unless this level is decisively reclaimed, the cryptocurrency is likely to continue its downward trajectory towards the $4,000 support level.