Ethereum (ETH) retraced below the $3,000 level, marking a four-month low and raising doubts about the continuity of the bull market. The move situates ETH within a broad correction that combines outflows, a drop in on-chain activity, and accumulation by large holders, placing the asset at the center of a conflicting set of signals.
Selling pressure is reflected in several key indicators. Total value locked (TVL) fell to $74,000 million, a 13% decline in one month, while on-chain activity and volumes on decentralized exchanges retreated by around 27%. These movements paint a picture of lower usage and liquidity in the short term.
The Market Value to Realized Value (MVRV) ratio places ETH in an “opportunity zone”, as the MVRV Z‑Score has exceeded thresholds associated with undervaluation. The relative strength index (RSI) shows extreme oversold conditions, with a reading of 14.5, a level not seen since April 2025; this type of technical extreme often precedes short-term rebounds.
Institutional accumulation and capital rotation
Despite net outflows in spot Bitcoin and Ethereum ETFs, large holders are accumulating. Whale accumulations of approximately $1,370 million and $900 million in institutional staking were recorded, movements consistent with strategic long-term purchases. An actor identified as BitMine Immersion acquired 2.9% of the total ETH supply, a sign of conviction by certain large-scale investors.
A rotation of capital toward altcoins has been observed, with notable flows into XRP and Solana ETFs and a drop in Bitcoin dominance, accompanied by a relative uptick in the ETH/BTC pair. That pattern often precedes periods of higher performance for alternative tokens within bull cycles. These dynamics point to the price drop of ETH coexisting with a redistribution of risk in the market, rather than a widespread abandonment of the asset.
On-chain data, large-holder activity, and technical signals suggest the drop below $3,000 functions as a correction and accumulation phase, not necessarily as the end of the bull market.
