Matrixport predicts that the Ethereum price may continue to consolidate as ETH ETFs lose steam and BitMine continues to be its main consistent buyer.
Summary
- Institutional demand for Ethereum has weakened in recent weeks, with BitMine emerging as the only major buyer amid persistent ETF outflows and declining market interest.
- Ethereum’s price continues to face bearish pressure below the $3,800 level, though oversold indicators suggest a potential short-term rebound if support near $3,700 holds.
According to a recent report by Matrixport, institutional demand for ETH has gone down in the past month. In fact, the on-chain analysis platform identified BitMine as the “only consistent buyer” of the token. In addition, the performance of ETH ETFs have remained subdued within October.
Historical data shows that ETH (ETH)-backed exchange traded funds recorded strong net inflows during July and August, reaching as much as $5.2 billion and $3.4 billion within those respective months. However, the flow of capital began to decline some time around September, when it fell to just $300 million.
Although October saw the amount of inflows doubling to $600 million, it still was not enough to catapult it further. The platform noted that the month saw “virtually no follow-through” since it fell from the billions.
Data from SoSo Value indicates that the trend of outflows for ETH ETFs continues to persist, as the combined performance of nine ETH ETFs on the market have generated $98.2 million outflows in daily net inflows on Oct. 31. However, this trend is not unique to ETH as Bitcoin (BTC) ETFs have also experience a wave of outflows, reaching $191.6 million in total last week.
Matrixport analysts note that Ethereum could be poised for further consolidation and even a deeper correction may be possible. Having fallen off the $4,000 mark just last week, the token has yet to recover from the drop. The platform seems to imply that BitMine’s buying power is one of the only factors keeping the asset afloat in terms of institutional demand, but not for long.
“BitMine’s NAV is only marginally above issuance levels, meaning the firm can still dilute shareholders and extract incremental capital, but that dynamic appears to be running on borrowed time,” said Matrixport analysts.
Within the past 30 days, the Tom Lee-led Ethereum treasury firm has added a total of 662,169 ETH to its holdings, bringing the total amount to 3.1 million ETH which represents nearly 3% of the ETH total supply. The company’s latest purchase took place on Oct. 27, when it bought 77,055 ETH or equal to $285 million based on current market prices.
With Ethereum’s new Fusaka upgrade coming in December 3, 2025, the token price could see renewed interest and buying activity. However, nothing is guaranteed.
Ethereum price analysis
Ethereum price is currently trading at around $3,714, which is below the 30-day period moving average that stands at $3,847. This signals ongoing bearish momentum as ETH struggles to reclaim key resistance levels, falling deeper below the $3,800 mark after failing to climb back up to $4,000.
The consistent pattern of lower highs and lower lows since mid-October reinforces the notion that sellers remain in control. The MA also acts as dynamic resistance, repeatedly rejecting upward attempts throughout the last few trading sessions.
At press time, the Relative Strength Index currently sits at 26.45 indicating that Ethereum has entered oversold territory. This suggests that selling pressure might be overextended in the short term, and a short-lived bounce or consolidation could follow.
However, the RSI’s inability to hold above the neutral 50 zone over the past weeks shows that bullish momentum has remained weak, with each recovery met by renewed selling. If the RSI remains suppressed below 40, it could confirm a continuation of the bearish trend.
Looking ahead, the $3,700 to $3,680 range forms an immediate support zone. A decisive break below this area could trigger further downside that could drag Ethereum down to the $3,500 psychological level.
Though, if buyers manage to defend this support and push ETH back above the 30-MA line near $3,850, a potential short-term reversal could form, targeting the $3,950 to $4,000 resistance area.
At the moment, Ethereum remains in a corrective phase led by short-term bearish sentiment. It appears to be headed for a breakdown below the $3,700 level or it could potentially bounce back to $3,850. Although momentum indicators still lean towards bearish, oversold signals hint that volatility could increase as buyers look for value entry points.