Bitmine has increased its bet on Ethereum (ETH) with a $137 million purchase as the Altcoins king reclaims the key $2,150 level and some market observers call for an end to the cryptocurrency market correction.
Bitmine Adds 65,000 ETH After Winter Crypto Calls End
On Monday, the world’s largest Ethereum vault, Bitmine, announced continued to enhance its bets on the Altcoin King, purchasing approximately $137 million in ETH last week.
In its weekly update, the company said it had purchased 65,341 ETH over the past week, maintaining an “increased pace of ETH purchases in each of the last three weeks.” This represents a significant enhance in the average number of ETH captures of 45,000-50,000 compared to previous weeks.
Notably, Bitmine’s latest purchase brought the company’s total cryptocurrency and cash holdings to $11 billion at current prices. As of March 22, the second-largest cryptocurrency company holds 4,660,903 ETH, 196 Bitcoin (BTC), a $200 million stake in Beast Industries, a $95 million stake in Eightco Holdings under its “Moonshots” initiative, and $1.1 billion in unencumbered cash.
Additionally, it holds 3.86% of the total ETH supply and is getting closer to its goal of controlling 5% of the altcoin’s leading supply of 120.7 million. Meanwhile, the company’s total ETH is 3,142,643, making it worth $6.5 billion at $2,072 per ETH.
Bitmine CEO Tom Lee emphasized that the company has maintained its increasing purchasing pace due to the base case scenario that “ETH is in the final phase of the ‘mini-crypto winter.’
As he noted, “Crypto, and ETH in particular, has outperformed the broader market since the start of the Iran war, with ETH up 18% and outperforming equities by 2,450 basis points.” For Lee, it showed that cryptocurrencies were “a good store of value in times of war.”
He also highlighted the US Congress’ recent progress on the CLARITY Act, confirming that it will be a positive, fundamental catalyst for Ethereum and “another reason why the probabilities indicate that crypto winter is largely behind us.”
Ethereum’s bullish momentum returning?
On Monday morning, the price of Ethereum rose along with the rest of the cryptocurrency market after President Donald Trump announced that he was postponing planned attacks on Iranian energy plants for five days.
Ethereum rose 8% from the psychological $2,000 level, reclaiming the key $2,150 area. Analyst Ali Martinez noted that the altcoin king is “showing signs of a major structural shift” as it showed the strongest combination of technical support and on-chain signals in months.
From A technical perspectiveEthereum is currently trading in a multi-year ascending triangle pattern on the weekly chart. This pattern suggests a potential breakout towards the $10,000 level.
He explained that the recent move towards $1,800 was “a critical reaction point, consistent with the ascending trend line of this multi-year structure.” Additionally, on-chain data confirms that the recovery “wasn’t just a random bounce,” with MVRV recently falling below 0.8, which has historically been the “generational buying zone.”
The fact that the chain reset occurred right when price was testing the triangle support adds enormous weight to this bullish thesis.
He also highlighted that the key SuperTrend indicator has moved from Sell to Buy for the first time since May, suggesting that the prolonged sideways period is ending and a recent uptrend is beginning.
Martinez concluded that a sustained move above the $2,350 area would be the first sign that Ethereum is leaving its accumulation range and entering a “true bullish expansion” and that any declines in the $1,800-2,000 range should be “seen as an opportunity as long as the $1,800 lower band remains intact.”
Featured image from Unsplash.com, chart from TradingView.com
