Ethereum Poised for Rebound as Major Investor BitMine Expands Holdings
Amidst recent market volatility that saw Ethereum (ETH) dip below the $4,450–$4,500 range, several analysts are predicting an imminent bounce for the leading altcoin. This optimistic outlook is further bolstered by the continuous accumulation of ETH by major crypto treasury firm, BitMine, signaling strong institutional confidence in Ethereum's long-term potential.
Ethereum Navigates Market Liquidation
Ethereum experienced a significant downturn, with its price dropping approximately 7% on Monday, triggered by one of the year's largest liquidation events. This market shake-up saw over $1.7 billion in leveraged crypto positions liquidated within 24 hours, according to CoinGlass data. ETH bore the brunt of these liquidations, accounting for nearly $500 million, followed by Bitcoin at $284 million. This pushed Ethereum's price to a one-month low of $4,077, testing the critical $4,100 support level for the first time since August. Despite the sharp decline, market observers noted the price action was relatively contained compared to past large-scale liquidations, such as a 45% drop in a single day in 2021.
Technical Analysis Points to Bullish Reversal
Technical analysis suggests Ethereum could be gearing up for a significant rally. Following its recent dip to the $4,100 support, some analysts, like MerlijnTheTrader, believe ETH is "following the blueprint" towards a five-digit target. Historically, Ethereum has shown resilience, having previously rallied to its all-time high of $4,800 after breaking out of a multi-year bullish pattern. This pattern involved breaking an Adam and Eve formation in 2021, retesting the breakout level as support, and consolidating for three months before its next major upward leg. This time, Ethereum is exhibiting a similar "textbook" setup, breaking out of a multi-year descending triangle formation and retesting it as support. If the $4,100 support holds, market watchers anticipate a 2021-like breakout, potentially propelling ETH toward the $10,000 mark. However, analyst Ted Pillows warns that a failure to hold the $4,100 level could see Ethereum fall further to the $3,700–$3,800 range.
BitMine Solidifies its Ethereum Stance
Adding further weight to the bullish sentiment, BitMine, the world's second-largest crypto treasury, has significantly increased its Ethereum holdings. Despite the recent market turbulence, the company revealed an accumulation of nearly 2.5 million ETH tokens over the past week, bringing its total holdings to over 2% of Ethereum's total supply. This move aligns with BitMine's ambitious goal to eventually hold 5% of Ethereum's total supply. As of its latest announcement, BitMine commands $11.4 billion in assets, including 2,416,054 ETH tokens, 192 Bitcoin (BTC), a $175 million stake in Eightco Holdings, and $345 million in unencumbered cash. BitMine's chairman, Thomas "Tom" Lee, reiterated his strong belief in Ethereum, stating it represents "one of the biggest macro trades over the next 10-15 years" and that "Wall Street and AI moving onto the blockchain should lead to a greater transformation of today's financial system. And the majority of this is taking place on Ethereum." Currently, ETH is trading at $4,145, reflecting an 8% weekly decline.
