Ethereum Price Tumbles 3.4% Even As Cathie Wood’s ARK Invest Buys More ETH Treasury Firm BitMine

The Ethereum price has tumbled 3.4% in the past 24 hours to trade at $2,847 as of 3:50 a.m. EST on a 31% surge in trading volume to $90.9 billion.

That drop in the ETH price comes as Ark Invest continues to buy the dip by accumulating more shares in leading Ethereum treasury firm BitMine Holdings.

Ark purchased BitMine shares worth $10.56 million across three ETFs (exchange-traded funds), adding to $17 million acquired on Monday.

BitMine slid 6.6% on Wednesday to close at $29.32, down roughly 24% over the past five days.

Ark Invest’s continued accumulation reflects CEO Cathie Wood’s bullish stance. She anticipates a “real break” in inflation next year, which could favor high-growth and innovation-focused assets like crypto stocks.

BitMine Chairman Tom Lee echoed this optimism, noting the company’s ongoing weekly ETH purchases even amid the market slump. He also cited improving regulatory clarity in Washington and stronger institutional participation as reasons why the “best days for crypto” are still ahead.

Ethereum Price Holds Strong Support

Ethereum price is trading at the $2,847, support after a prolonged bearish move. On the daily timeframe, ETH remains inside a descending (bearish) channel that has guided price action lower since the September peak near the $4,800–$5,000 region.

However, recent candles suggest a potential bullish reversal attempt from the lower boundary of this channel.

The ETH trading pair topped out near the R1 resistance zone, where strong selling pressure emerged. That rejection marked the start of a steady downtrend characterized by lower highs and lower lows.

The bearish channel clearly defines this trend, with price respecting both the upper resistance line and the lower support line multiple times, reinforcing its technical validity.

Currently, ETH is bouncing from the lower channel support, which also aligns with a key horizontal support level around $2,800–$2,850. This confluence strengthens the area as an important demand zone. Historically, similar reactions from such confluence zones have led to short- to medium-term relief rallies.

ETHUSDT Analysis Source: Tradingview

The Fibonacci retracement drawn from the major swing low to the recent high highlights the 0.886 retracement level as a critical support area. Price is holding just above this level, which often acts as a last defense for bulls in corrective phases.

A sustained hold above this zone increases the probability of a reversal rather than a continuation breakdown.

The RSI (14) is currently around 38–40, which is below the neutral 50 level but above deep oversold conditions. This indicates bearish momentum is weakening rather than accelerating. Additionally, RSI has started to flatten and curl slightly upward, often an early signal that selling pressure is fading.

A bullish confirmation would require ETH to break and close above the midline and upper boundary of the bearish channel, followed by a reclaim of the $3,100–$3,300 resistance zone.

A successful breakout could open the door for a move toward $3,500, where prior support has turned into resistance.

On the downside, failure to hold above $2,800 would invalidate the bullish reversal setup and expose ETH to deeper losses toward $2,500 and potentially $2,200.

Related Articles: