Ethereum has been hit by another wave of selling pressure, especially following US president Trump’s threat for 150% tariffs to China. On the day, Ether (ETH) is down by 3.34%, while Bitcoin (BTC) is also down by 1.40% amid the market downturn.
While the hopes for an October rally still seem high, Ethereum is struggling to stay afloat above $4,000. On-chain and technical data also point to further decline, but all hope is not lost yet.
ETH Price Performance
Stepping out of the weekend, Ethereum made a strong attempt to recover from recent losses as the price climbed past $4,000. However, strong resistance around $4,100 weighed the price down triggering yet another sell-off and causing a price dip to $3,918 as of this writing, per the daily chart on TradingView.
With the latest drop, Ethereum now seems to be stuck below $4,000. Furthermore, technical indicators including the relative strength index (RSI) and moving average convergence divergence (MACD) hint at a possible stagnation around the current level. The RSI, for instance, sits at 42.79 showing a bearish momentum on the price.
On the other hand, the MACD line sits at -110.01 below the signal line at 89.59. This confirms the prevalent bearish trend for Ethereum. However, the reduction in size on the histogram bar hints at a possible reversal.
Ethereum Exchange Reserves Are Rising
With Ethereum facing price struggles, the glimpse of hope for a recovery is fading out. As observed on CryptoQuant, Ethereum exchange reserves are rising again. Since October 18, the reserves have risen from 15.86 million to 15.99 million.
The exchange reserves metric is often used to measure the number of coins held in exchanges. When the number rises, it signifies that selling pressure is rising as investors prepare to sell.
For Ethereum, with the price dipping below $4,000 after a failed breakout attempt, investors could now be positioning to liquidate their assets. These investors now lack conviction for a continued bullish rally and could potentially trigger further price decline in case strong selling kicks in.
BitMine Offers a Glimpse of Hope
Meanwhile, despite the lack of conviction amongst retail investors, BitMine has continued to show strong belief in Ethereum. As flagged by Lookonchain, an on-chain data tracking platform, the Ethereum treasury firm bought another 63,539 ETH worth $251.6 million over the last 24 hours.
BitMine’s recent purchase came amid huge sell-offs. Lookonchain confirmed that 3 new wallets linked to BitMine received the 63,539 from Kraken and BitGo.
As of this writing, BitMine now holds a total of 3,299,553 ETH, making it the biggest holder of the cryptocurrency. These tokens are worth $13.07 Billion and account for 2.73% of the total ETH supply.
With stronger institutional backing, ETH could invalidate the bearish outlook. Continued accumulation by institutions and whales will be crucial to prevent a dip below the $3,800 level.
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