Ethereum (ETH) remains under notable bearish pressure, trading around $3,710 after dropping 4.5% in the past 24 hours.Related Reading: Crypto Exchanges Brace For EU Power Shift Toward Central RegulationThe 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 DowntrendWhile 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reveals signs of underlying strength.According to Glassnode and Sentora data, over $600 million worth of ETH has been withdrawn from exchanges in just one week.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 ReboundBeyond 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.Related Reading: Solana Foundation Exec Slams XRP Hype: ‘Show Me the Data’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