Ethereum Price and BitMine’s Latest Purchase
Ethereum (ETH) is trading above $4,200 on Monday. This follows BitMine Immersion’s recent purchase of over 202,000 ETH during last week’s crypto market crash.
BitMine’s Ethereum Holdings Grow
BitMine Immersion added 202,037 ETH to its treasury after the market dip last week. This brings its total Ethereum holdings to 3.03 million tokens. The company aims to own 5% of all circulating ETH and is now more than halfway there.
BitMine Chairman Thomas Lee said, “The crypto liquidation over the past few days created a price decline in ETH, which BitMine took advantage of.”
The Nevada-based firm also holds 192 Bitcoin (BTC), a $135 million stake in Worldcoin (WLD), Eightco Holdings, and $104 million in cash. BitMine is the largest ETH treasury, with over 3.5 times more ETH than its closest competitor, SharpLink Gaming (SBET).
BitMine was the 22nd most traded stock in the US last week, with an average trading volume of $3.5 billion. Its stock (BMNR) is up over 3% as of Monday.
Last week, Kerrisdale Capital revealed a short position on BitMine. They noted falling net asset value premiums and less interest in crypto treasury strategies.
Ethereum Price Outlook
Ethereum is recovering after a $19.1 billion crypto leverage wipeout on Friday. ETH liquidations made up over $4.3 billion of that total.
Thomas Lee added, “Volatility creates deleveraging and this can cause assets to trade at substantial discounts to fundamentals, or as we say, ‘substantial discount to the future’ and this creates advantage for investors, at the expense of traders.”
ETH faces resistance near $4,270 after bouncing back from the $4,100-$4,000 support zone. This support is strengthened by the 100-day Simple Moving Average (SMA).
The price recovery above $4,000 follows strong support near $3,470 during Friday’s flash crash. This level will be important if the market falls again.
Technical indicators show improving momentum. The Relative Strength Index (RSI) is rising toward neutral, and the Moving Average Convergence Divergence (MACD) shows shrinking red bars. A clear crossover in these indicators would confirm a bullish trend.
