Ethereum has fallen below the $3,000 level, extending a period of volatile price action as the overall crypto market remains cautious. While spot prices continue to suffer from overhead resistance, on-chain data shows a notable disconnect between market sentiment and long-term positioning. According to Arkam data, Bitmine has staked an additional 250,912 ETH (worth approximately $745 million) in the past 18 hours, adding to its already sizeable locked position.
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This move is drawing renewed attention to the behavior of large, well-capitalized companies during periods of low prices. This scale of staking activity suggests that some participants are prioritizing yield generation and long-term exposure over short-term price fluctuations. Rather than allocate their holdings to rising markets, these companies are choosing to remove supply from circulation and tighten liquidity while accepting less flexibility.
The contrast is striking. Ethereum price is trading below key psychological thresholds, but capital continues to flow into large staking contracts. The move highlights the growing structural role of Ethereum’s proof-of-stake model, with investment decisions increasingly driven by returns such as network participation and cash flow, rather than just price appreciation.
As Ethereum stabilizes below $3,000, the key question is whether sustained staking demand can offset weak spot momentum, or whether the price needs to stabilize further before confidence returns to the overall market.
Liquid Ethereum supply is tight due to large-scale staking
According to Arcam data, Bitmine currently has a total of 2,582,963 ETH (worth approximately $7.67 billion) staked. This represents about 61% of the company’s total Ethereum holdings, and this level highlights how large holders are willing to invest in long-term network participation rather than maintaining liquidity exposure.
This action is especially noteworthy given the current market conditions. Ethereum remains below the $3,000 level, volatility is rising, and leverage indicators suggest weak positioning among short-term traders. Nevertheless, Bitmine’s decision to stake a large portion of ETH indicates a clear prioritization of yield generation and balance sheet efficiency over tactical trading. Staking effectively removes ETH from active circulation, tightening the available supply and curbing sell-side pressure from these large wallets.
At the same time, Ethereum balances held on exchanges continue to decline, reinforcing the situation of liquid supply constraints. A decrease in exchange balances does not guarantee a rise in price, but it does suggest that fewer coins will be readily available to meet sudden sell demand. In this environment, price movements become more sensitive to marginal flows, especially during new periods of stress or demand.
The combination of large-scale staking and shrinking foreign exchange reserves points to a market where long-term holders are locking in their exposure. Short-term sentiment remains cautious, however. Whether this structural supply tightness translates into price support will depend on broader risk conditions and a sustained recovery in spot demand.
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ETH remains steady below major moving averages
Ethereum’s price movement reflects a market caught between weakening momentum and attempts to stabilize after a prolonged correction. On the daily chart, ETH is trading around the $2,900-$3,000 zone, a level that has served as both psychological support and a pivot area in recent weeks. The rebound from early quarter highs revealed a series of high declines, leaving the broader structure tilted to the downside.
From a trend perspective, ETH remains below major moving averages. The 50-day average has reversed and is above the price. The 100-day average continues to trend downward, while short-term bearish pressure increases. It acts as a dynamic resistance around $3,200-$3,300.
The 200-day moving average is still rising, but has leveled off. It sits higher, indicating that long-term trend support has not yet been retrieved. Until ETH closes decisively above its 50-day and 100-day averages, any upward attempts are likely to remain corrective rather than impulsive.
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Volume dynamics adds context to this integration. Selling pressure during the recent pullback was significant but not extreme, suggesting dispersion rather than panic. Since then, trading volumes have contracted, consistent with the market entering a compression phase. This indicates indecision rather than active accumulation.
Overall, ETH is consolidating below key resistance levels while maintaining a fragile support band around $2,800-$2,900. If losses in this zone continue, downside risk may materialize. A recovery requires a return to the key moving averages to move the structure towards stabilization.
Featured image from ChatGPT, chart from TradingView.com
