Ethereum (ETH) Under Bearish Pressure as On-Chain Data Hints at Market Reversal

Ethereum (ETH) remains under notable bearish pressure, trading around $3,710 after dropping 4.5% in the past 24 hours.

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The asset has struggled to maintain its uptrend, slipping below the $3,800 level and testing the critical $3,715 support zone. Analysts note that this level has been retested multiple times since October, serving as a key battleground between bullish and bearish sentiment.

Technical indicators such as the Relative Strength Index (RSI) and MACD show weakening momentum, suggesting that sellers remain in control. A decisive close below $3,680 could expose ETH to deeper losses toward $3,550 or even $3,500.

However, a rebound from this level could allow buyers to target resistance zones near $3,920 and $4,000. Interestingly, despite the short-term bearish tone, Ethereum’s broader chart structure forms a falling wedge pattern, a setup often preceding a bullish reversal.

Ethereum (ETH) On-Chain Data Signals Accumulation Despite Downtrend

While technicals paint a cautious picture, on-chain activity reveals signs of underlying strength.

According to Glassnode and Sentora data, over $600 million worth of ETH has been withdrawn from exchanges in just one week. This mass exodus often signals accumulation, as investors move holdings to cold wallets for long-term storage.

Supporting this view, Ethereum’s MVRV ratio, a key valuation metric comparing market value to realized value, currently stands at 1.50, a level historically associated with market equilibrium before major uptrends.

Notably, staked Ethereum maintains an even higher MVRV of 1.7, suggesting that long-term holders are confident in ETH’s recovery. With 36.1 million ETH staked, representing nearly a third of total supply, the data highlights reduced selling pressure and growing network resilience.

Stablecoin Surge and Institutional Confidence Prepare for Rebound

Beyond price action, Ethereum’s ecosystem continues to expand. October saw a record $2.82 trillion in stablecoin transaction volume on the network, a 45% increase month-over-month, driven by yield farming and institutional liquidity management.

Analysts interpret this as a sign of capital rotation rather than market exit, with traders parking funds in stablecoins while awaiting favorable conditions to re-enter ETH positions.

Institutional inflows into Ethereum-based products have also topped $15 billion in 2025, reflecting steady confidence in Ethereum’s long-term role in decentralized finance (DeFi) and payments.

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While short-term volatility may persist, these metrics suggest that Ethereum’s correction could be a temporary pause before a broader market reversal toward the $4,100–$4,200 range forecast by analysts.

Cover image from ChatGPT, ETHUSD chart from Tradingview