Bitmine Acquires Another 28,625 Ethereum ($82.1M) Amidst Market Decline

Bitmine Acquires Another 28,625 Ethereum ($82.1M) Amidst Market Decline

Ethereum is experiencing significant downward pressure, struggling to maintain the $2,800 mark after a steep correction that has seen over 45% of its value wiped out since late August. Despite the overall bearish sentiment, Bitmine, led by Tom Lee, has significantly increased its Ethereum holdings, demonstrating a strong belief in the cryptocurrency's long-term potential.

Key Takeaways

Ethereum is facing a tough market situation, with a price drop of over 45% since late August.
Bitmine has acquired an additional 28,625 ETH, valued at $82.11 million, displaying confidence in Ethereum's future.
The cryptocurrency's current pricing is critical, hovering around the important $2,800 level.
Ethereum must hold the $2,800 level and reclaim $3,000 to potentially signal a bullish trend reversal.
Key support provided by the 200-week moving average may further influence Ethereum's price movement.

Market Challenges for Ethereum

Ethereum is currently battling to maintain the $2,800 level after experiencing a severe correction that has reduced its value by more than 45% since late August. This sharp decline has shifted market sentiment toward a bearish outlook, with many traders concerned that ETH could be facing a lengthy downtrend. Bulls are having a tough time securing a reliable support level, and the lack of any strong buying activity has only heightened uncertainty. Additionally, liquidity is thinning across major exchanges, further indicating that the market remains in a risk-off phase.

However, not all major players are withdrawing. In fact, some are ramping up their investments. On-chain data from Lookonchain reveals that Tom Lee’s Bitmine—known for its crypto-focused investments—continues to buy Ethereum aggressively at current prices. Bitmine stands out as one of the few entities consistently increasing its holdings during this downturn, which points to a strong belief that Ethereum may be undervalued in the long run.

The contrast between retail fear and whale accumulation is increasingly striking. As ETH hovers around a crucial psychological threshold, the upcoming days could determine whether this whale confidence leads to broader market stability or remains a unique bet against the existing trend.

Bitmine's Bold Accumulation Strategy

According to Lookonchain, Bitmine, spearheaded by Tom Lee, has aggressively accumulated an additional 28,625 ETH valued at $82.11 million. This action reinforces the narrative that some of the market's most experienced players are preparing for a potential rebound, despite the widespread fear and ongoing selling. Historically, large-scale purchases during significant corrections have coincided with early signs of market reversals, making Bitmine's bold strategy noteworthy and potentially indicative that Ethereum is nearing a pivotal turning point.

Bitmine buys 28.625K Ethereum | Source: Lookonchain

Yet, the prospect of recovery is not assured. Ethereum remains constrained near the $2,800 zone, which has served as a fragile line of defense throughout this downturn. For momentum to shift positively, Ethereum must not only maintain this area but also regain the $3,000 mark, which has transitioned into a key resistance level. A definitive move above $3,000 would indicate that buyers are re-entering the market with strength, potentially paving the way for a broader trend reversal.

Until then, the situation remains precarious. Bitmine’s purchasing activity provides a bullish signal, but without confirmation from price movements, Ethereum continues to tread carefully. Should it fail to maintain current levels, another wave of selling pressure may emerge. Conversely, consolidating at this area might trigger the rebound that whales appear to be banking on.

Major Weekly Support Level at Stake

On Ethereum's weekly chart, the asset is currently resting near an important support zone after a dramatic fall from the $4,800 region. The price has retreated to approximately $2,800, a level closely associated with the 200-week moving average—a historically significant area where ETH has often encountered long-term support. This zone has previously acted as a springboard for major market reversals in both 2022 and mid-2023, making its defense vital for preserving overall structural strength.

ETH testing key demand level | Source: ETHUSDT chart on TradingView

The recent drop below the 50- and 100-week moving averages underscores the severity of the ongoing sell-off. Momentum has clearly shifted in favor of sellers over the past few weeks, with numerous large red candles indicating aggressive distribution. However, ETH’s current attempt to stabilize above the 200-week moving average suggests that buyers are beginning to re-enter the market, helping to prevent a deeper decline toward $2,400.

If Ethereum can sustain its position above this support area and reclaim the important psychological $3,000 level, a recovery structure may start to take shape. However, if the 200-week moving average is breached convincingly, the cryptocurrency could face a more extended correction.

Featured image from ChatGPT, chart from TradingView.com