BitMine ETH Purchase Hits $70M as Ethereum Slumps Below $3000

In the midst of a challenging crypto market, BitMine Immersion Technologies has increased its Ethereum (ETH) holdings by 23,773 ETH in the last three days, worth around $70 million. The recent BitMine ETH purchase is the latest move in a series of accumulation by the firm and further boosts its rank as the biggest ETH-holding digital asset firm. On average, the newly acquired tokens were purchased for $2,935 each.

Aggressive BitMine ETH Purchases

On-chain data from Lookonchain shows BitMine purchased 7,080 ETH on Monday, for approximately $19.8 million. On Saturday, BitMine purchased another 16,693 ETH for $50.1 million. As of press time, BitMine now owns about 3.7 million ETH. 

With these recent BitMine ETH purchases, the firm is on track to own 62% of the target to hold 5% of total Ether (ETH) in circulation. However, the company has not yet covered its losses with these transactions, as it now has an average cost of around $3,008 per token.

BitMine’s purchases mark a continuation of a recent buying spree by Bitwise, which purchased almost 96,800 ETH last week in transactions totaling approximately $273.2 million. This activity shows continued institutional interest in Ethereum despite the recent market crash.

Market Context and Ethereum’s Current Performance 

As of press time, the Ethereum price is around $2,805 per coin, having lost more than a third of its all-time high price of $4,800. Traders are driving ETH between $2,700 and $2,850, where it has been struggling to break out for several days now. However, Ethereum remains the leading smart contract platform by market cap, and increased DeFi and NFT activity on it continues to support its long-term growth story.

ETH touched a 24-hour low of $2,722 and a high of $2,846. The market capitalization of the second-largest cryptocurrency is currently about $338 billion. This price action is slightly positive in the context of crypto market corrections, but the short-term sentiment towards Ethereum remains bearish according to some analysts.

Over the past 24 hours, ETH has traded between a low of $2,722 and a high of $2,846. Its current market capitalization is around $338 billion. This has been somewhat muted price action, considering the wider corrections that have affected other cryptocurrencies, but some are concerned about Ethereum’s short-term trajectory.

ETH Price Analysis: Key Levels to Watch 

Looking at key support and resistance areas, the Ethereum price has formed a significant support area between $2,500 and $2,600 on the downside. In case Ethereum continues to slide below this support area, the next support zone could be seen around $2,200 to $2,400. However, considering Ethereum has an institutional anchor in the form of BitMine’s giant accumulation, the crypto asset may not experience a massive downside.

On the upside, the $3,000 to $3,200 range acts as a strong resistance level on Ethereum. A breakout above this level could push the Ethereum price to higher levels, around $3,500 to $3,800, in the next few months.

Ethereum’s Long-Term Outlook 

In the long term, Ethereum’s price may find some bullish support from the fact that upgrades to the network, such as Ethereum 2.0 and shard chains, should significantly reduce transaction fees and allow the platform to process many more transactions than the current network can, potentially resulting in increased demand and institutional adoption, which can underpin future price gains. Ethereum’s growing use case in the rapidly growing DeFi sector, as well as in the NFT space, may also add to the fundamental value of the asset.

BitMine’s continued accumulation of ETH, even during market drawdowns, is a very bullish sign for the cryptocurrency, which strongly suggests that the company has significant long-term confidence in the value and potential of Ethereum. The BitMine ETH purchase strategy strongly suggests that the company believes the ETH price will rebound from its current levels and has the potential to hit new ETH all-time highs in the future.

Final Thoughts: Should You Invest in Ethereum Now?

This massive BitMine ETH purchase and Ethereum’s fundamental position in the blockchain industry could mean ETH is a good long-term hold. Short-term volatility may persist, but BitMine’s actions and those of other institutional investors indicate a bullish sentiment towards Ethereum’s future. Traders seeking more investment in ETH should watch the $2,600–$2,800 levels and consider Ethereum’s long-term growth prospects.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.