BitMine Immersion Technologies expanded its Ethereum treasury last week, purchasing an additional 12,532 ETH. The acquisition brings the company's total holdings to approximately 6.028 million tokens, edging closer to its stated goal of controlling 5% of Ethereum's total supply.
Chairman Thomas Lee defended the move in a Monday statement, outlining four potential drivers for what he believes could be the largest crypto bull cycle yet. He pointed to tokenization, generational wealth transfers, supply absorption by digital asset treasury companies, and the growing intersection of crypto and artificial intelligence as key catalysts.
Lee argued that younger generations inheriting wealth may show a stronger preference for cryptocurrencies and equities, potentially boosting demand. He also noted that treasury companies' accumulation over the past year could reduce available supply, a dynamic he contrasted with the 2019–2021 cycle when such entities played a smaller role.
Despite the optimistic outlook, BitMine's holdings are currently underwater. Data from Artemis indicates the company's Ethereum stash carries more than $4 billion in unrealized losses, reflecting the sharp decline in ETH prices from earlier highs.
Lee said much of the treasury was accumulated during a bear market, positioning the company for a potential recovery. However, he also confirmed that BitMine would halt purchases once its holdings reach 5% of Ethereum's supply. Reaching that threshold would remove a recurring source of ETH demand that has supported the market over the past year.
Ethereum price action: support holds, resistance ahead
Ethereum has defended the $2,400 support level over the last 24 hours, with the daily chart showing a neutral-to-bullish short-term bias. The cryptocurrency is now attempting to reclaim the 20-day exponential moving average (EMA) near $2,592.
At press time, ETH is trading around $2,523, with immediate resistance at $2,548, followed by the 20-day EMA at $2,592. A sustained move above those levels could open the door to $2,636 and $2,781, with more distant targets at $3,075 and $3,253.
On the downside, a daily close below the 50-day EMA at $2,503 could expose the support cluster between $2,355 and the 100-day EMA at $2,351. If selling accelerates, deeper levels identified in the analysis are $2,204 and $1,971.
Market data shows approximately $183.61 million in liquidations over the past 24 hours, with long positions accounting for $144.37 million. The Relative Strength Index sits near 42, while the Stochastic oscillator is around 28, suggesting subdued buying momentum as ETH attempts to stabilize.
Lee's bullish forecast stands in contrast to the weaker near-term technical picture, but he remains confident that the confluence of catalysts could drive a record bull market. Whether that materializes will depend on Ethereum's ability to hold key support and regain upward momentum.
This article is for informational purposes only and does not constitute financial advice.
