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Ethereum is under significant pressure as the broader crypto market enters a corrective phase. After reaching a new all-time high of around $4,950 on August 24, ETH has now shed more than 22% of its value, slipping below the psychological $4,000 level. The steep pullback has left many investors in difficult positions, with some of the largest players in the market also feeling the impact.

According to top analyst Maartunn, even BitMine, one of the largest institutional holders of Ethereum, has seen its ETH position dip below its on-chain cost basis. This marks a critical moment, as whales typically act as stabilizers during corrections, and their unrealized losses reflect the depth of current market stress.

Despite this downturn, some analysts argue that Ethereum’s retracement may represent a healthy reset after weeks of overheated momentum. Corrections of this scale are not unusual following parabolic rallies and often serve to shake out excess leverage before setting up for longer-term stability. Still, with sentiment fragile and selling pressure mounting, the coming days will be pivotal for ETH as it tests key support levels and investors closely monitor whale behavior for signs of renewed confidence.

BitMine’s ETH Play Falls Below Cost Basis

According to top analyst Maartunn, Ethereum’s correction has placed one of the market’s largest institutional holders under heavy pressure. BitMine’s ETH portfolio, valued at roughly $7.5 billion, has just dipped below its on-chain cost basis around the $4,000 level. This development underscores the severity of the recent downturn and highlights that even large-scale players are not immune to the pain of corrections.

BitMine Ethereum Average Cost Basis | Source: Maartunn

Maartunn emphasizes that this stage of the market is less about timing the perfect entry or exit and more about endurance. As he put it, “It’s about who can hold their breath the longest.” The remark reflects a broader sentiment among analysts who view the current environment as a psychological test for both retail and institutional investors. With volatility high and sentiment deteriorating, the ability to withstand drawdowns may determine who ultimately benefits from the next phase of Ethereum’s cycle.

The outlook remains divided. Optimists argue that this is a necessary pullback before Ethereum gears up for a massive leg higher, supported by growing institutional adoption and strong long-term fundamentals. On the other hand, cautious voices warn of a deeper correction, noting that breaking below critical support levels could trigger further downside.

The coming weeks will likely prove decisive. If ETH can stabilize above the $3,800–$4,000 range, confidence may return quickly. However, if selling pressure intensifies, the market could face an extended period of uncertainty before momentum rebuilds.

Bulls Struggle To Find Support

Ethereum (ETH) has broken below the critical $4,000 level, now trading around $3,891, as shown on the 12-hour chart. This decline marks a continuation of the bearish trend that started after the September peak near $4,950. The breakdown has been accompanied by rising trading volume, confirming strong selling pressure and suggesting that bears currently dominate the market.

ETH losing ground | Source: ETHUSDT chart on TradingView

The 50-day EMA has crossed below the $4,400 zone, reinforcing near-term weakness, while the 200-day EMA around $3,650 now acts as the next major support level. The price action shows a decisive rejection from the $4,600–$4,800 resistance range earlier this month, followed by a steep selloff that erased more than 20% of ETH’s value.

If ETH holds above the $3,850–$3,900 zone, it could attempt a rebound and retest the $4,200 resistance. However, failure to defend this range risks further downside toward $3,650–$3,700, where the 200-day EMA and previous accumulation levels converge.

Ethereum is in a corrective phase, but the volume spike suggests potential exhaustion of sellers. The coming sessions will determine whether bulls can reclaim $4,000 to stabilize momentum or if further capitulation is ahead.

Featured image from Dall-E, chart from TradingView

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