Bitmine Purchases 28,625 Ethereum Amid Market Decline
Ethereum is attempting to maintain the $2,800 level after a sharp decline that reduced its value by over 45% since late August. This downturn has turned market sentiment bearish with concerns of a prolonged downtrend. Liquidity remains low, indicating a risk-off market phase.
- Despite selling pressure, some major players like Tom Lee’s Bitmine are aggressively buying ETH, suggesting confidence in its long-term value.
- Bitmine purchased 28,625 ETH worth $82.11 million recently, aligning with early reversal zones historically observed during large-scale buying.
Ethereum must hold the $2,800 area and reclaim the $3,000 resistance for momentum to shift positively. A failure to hold current levels might trigger further declines, but stability could lead to a rebound.
Testing a Major Weekly Support Zone
Ethereum is currently at a critical support level around $2,800, near the 200-week moving average, which has previously been a launchpad for reversals. Defending this zone is crucial for structural strength.
- Recent selloff intensity is shown by breakdowns below the 50- and 100-week moving averages.
- The stabilization above the 200-week MA suggests buyer intervention, preventing a deeper drop towards $2,400.
A recovery structure may form if Ethereum holds this support and reclaims $3,000, but a break below the 200-week MA could lead to a more extended correction.