Ethereum remained near $2,400 on Tuesday, giving back modest early gains as broader market pressures outweighed continued corporate accumulation. BitMine Immersion Technologies disclosed another purchase of 12,535 ETH last week, extending its weekly buying streak since June 30, 2025.
The company now holds over 6.041 million ETH, valued at roughly $14.3 billion, representing about 4.9% of the total circulating supply of 122.1 million ETH. This brings BitMine closer to its stated goal of accumulating 5% of Ethereum's supply, a strategy it calls "the alchemy of 5%."
Despite this significant corporate demand, Ethereum's early recovery faded as selling pressure persisted across risk assets. Thomas Lee, BitMine's chairman, attributed the weakness to a mix of macroeconomic and technology-sector concerns, including rising AI capital expenditure, AI safety risks, ongoing US-Iran tensions, uncertainty ahead of US midterm elections, and higher global bond yields.
Lee noted that selling in Asian semiconductor and memory stocks could spill into cryptocurrencies as investors reduce risk. "Crypto is widely held in the US, Korea, and Taiwan. So naturally, when investors in those regions de-risk, this creates spillover pressures in crypto markets," he said.
Lee argued that falling prices can create attractive opportunities when fundamentals remain strong, pointing to crypto's potential in modernizing financial infrastructure and supporting AI agents. However, this reflects BitMine's investment view rather than a guarantee that Ethereum's correction has ended.
While BitMine expanded its treasury, US spot Ethereum ETFs saw approximately $320 million in net outflows last week, marking a third consecutive week of withdrawals, according to SoSoValue data. The trend continued this week with $103 million in outflows on Monday, highlighting divergent behavior across investment channels.
Ethereum derivatives also experienced significant volatility, with futures liquidations totaling about $42.58 million over 24 hours, including over $23 million in long positions. This concentration suggests that downward price swings forced bullish leveraged traders to exit.
Technical outlook: Moving averages cap recovery
Ethereum's daily chart retains a bearish near-term bias, with the price below its 50-day exponential moving average near $2,483 and its 20-day EMA around $2,504. These averages form the first significant resistance zone; a sustained move above both would strengthen the recovery case and bring horizontal resistance at $2,548 into focus.
Further upside barriers stand at $2,637 and $2,782. Momentum indicators remain subdued, with the Relative Strength Index in the high 30s and the Stochastic Oscillator near the low 20s, suggesting weak momentum but not ruling out short-term rebounds.
Until Ethereum reclaims its shorter-term moving averages, rallies remain vulnerable to renewed selling. The first important support zone lies between $2,351 and $2,355, where the 100-day EMA aligns with a horizontal price level. Holding that area would preserve a technical floor beneath the current market.
A sustained breakdown would weaken the outlook and expose the next support near $2,205. If selling continues beyond that level, deeper support sits at $1,972 and $1,828. For investors planning to hold ETH through the volatility, choosing among crypto wallets remains an important custody consideration, although secure storage does not protect against price declines.
For now, Ethereum's ability to defend $2,351–$2,355 and recover above $2,483–$2,504 will provide a clearer test of whether buying demand can overcome persistent selling pressure.
This article is for informational purposes only and does not constitute financial advice.
