Ethereum struggles at $3,000 mark: Major investors capitalize on price weakness to enter positions

Ethereum Under Pressure: Psychological $3,000 Mark in Focus

Ethereum (ETH), the second-largest cryptocurrency, finds itself in a critical market phase. Following a price decline earlier in the week, bulls are attempting to defend the psychologically significant $3,000 mark as a key chart level ^[1]. Simultaneously, institutional investors such as Tom Lee's BitMine are capitalizing on the price weakness with substantial purchases totaling $70 million ^[2].

Technical Analysis Shows Bearish Momentum

Ethereum's technical situation has deteriorated significantly. The price has broken out of the ascending channel that dictated price movements between April and September ^[2]. ETH is currently trading below both the 50-day and 200-day moving averages, which stand at approximately $3,450 and $3,526 respectively, indicating that sellers currently control the market ^[2].

Following a low near $2,700, Ethereum managed a modest recovery, yet the 20-day exponential moving average (EMA20) represents a key resistance level that investors should monitor closely ^[1]. Momentum indicators such as the RSI in the low 30s and a negative MACD confirm the downtrend, though they also suggest a possible oversold condition ^[2].

Key Levels for a Trend Reversal

For a sustainable reversal, bulls must reclaim important price levels ^[1]. In the short term, Ethereum must recapture the broken moving averages in the $3,450 to $3,550 range to signal a meaningful recovery ^[2]. A breakout above $3,550 could open the door for movement toward $3,800 to $4,200 in the coming months ^[2].

On the downside, Fibonacci retracement levels identify an important support zone around $2,140. Should the price close below $2,700, a further decline toward this deeper support level could follow ^[2].

Strong Fundamental Foundation Despite Price Decline

Despite weak price performance, on-chain data reveals a robust fundamental foundation. In the third quarter, more than 130 million transactions were processed, with volume rising approximately 30 percent year-over-year thanks to growth on Layer-2 networks ^[2].

Staking remains a central pillar of the bullish scenario: approximately 35 million ETH are locked in validator contracts, representing about 30 percent of total supply and effectively removed from daily trading ^[2]. This high staking rate, combined with a total value locked (TVL) in DeFi exceeding hundreds of billions of dollars, signals that many users and institutions are committing capital to the Ethereum ecosystem for the long term ^[2].

Multiple Factors Determine Price Development

Ethereum's price development is influenced by various factors, including demand for ETH, availability, competition from other cryptocurrencies, regulatory frameworks, and the platform's technical advancement ^[1].

Derivatives data paints a more cautious picture: Ethereum ETF products have experienced both strong inflows and outflows in recent months, with hundreds of millions of dollars withdrawn on multiple days ^[2]. Futures open interest levels remain elevated while funding rates have cooled, suggesting that traders are hedging downside risks while long-term investors continue accumulating quietly ^[2].