Ethereum (ETH) Price Prediction: Ethereum Dips, but Bitmine Adds $220M ETH—Bullish Signal or Risky Bet?

Ethereum (ETH) price is facing heightened selling pressure this week as bearish sentiment, supply overhang, and profit-taking threaten to push the market below critical support levels.

After briefly consolidating near $4,800, Ethereum slipped toward a two-week low, with retail traders turning cautious even as institutional accumulation signals long-term confidence in the network’s growth.

Market Overview: Pressure from Shorts and Outflows

Ethereum’s weakness has been amplified by a surge in short positions from hedge funds. According to CME Ether Futures data, institutional shorts more than doubled this month—from $2.3 billion on August 5 to $4.19 billion by mid-August. By contrast, asset managers hold just $1.22 billion in long positions, highlighting the dominance of bearish bets.

Ethereum (ETH) was trading at around $4,201, down 2.53% in the last 24 hours at press time. Source: Ethereum Liquid Index (ELX) via Brave New Coin

The pressure is also evident in exchange-traded funds. U.S.-based Ethereum spot ETFs recorded $197 million in daily outflows, the second-highest ever, suggesting waning institutional appetite. Timothy Misir, Head of Research at BRN, told investors that the $4,400 level remains a key threshold for Ethereum’s near-term momentum: “If ETH loses this support decisively, downside risks could accelerate.”

Validator Exit Queue and Supply Concerns

Ethereum’s Proof-of-Stake network now shows a record-high exit queue of over 910,000 ETH, worth nearly $3.9 billion. This points to validators preparing to unstake, with withdrawals expected to take effect over the next 15 days. While the mechanism is designed to prevent a mass exodus that could threaten network security, analysts warn that much of this supply could hit the open market.

Ethereum has about 910,000 ETH (~$3.9B) pending in its exit queue, with withdrawals estimated to take roughly 15 days. Source: @FinancialPress viaX

Xu Han, partner at HashKey Capital, noted: “Profit-taking is the dominant motive. With Ethereum near its historical highs, many participants are locking in gains. At the same time, the rise in borrowing costs has made leveraged staking trades far less attractive.”

Meanwhile, new staking demand lags far behind exits, with just 259,000 ETH ($1.1 billion) queued for deposit. Preston Van Loon, an Ethereum developer, emphasized the importance of the withdrawal mechanism: “Without the exit queue, validators could rush to exit during an attack, weakening the network when it’s most vulnerable.”

Institutional Accumulation: Bitmine and SharpLink Step In

Amid the sell pressure, Tom Lee’s Bitmine doubled down by purchasing 52,475 ETH worth $220 million during the recent dip. This pushes its total holdings to 1.57 million ETH, valued at $6.6 billion, making it the second-largest Ethereum treasury firm. Bitmine has been consistently accumulating ETH, with the goal of securing 5% of Ethereum’s total circulating supply.

Bitmine adds $220M in ETH, bringing holdings to $6.6B, signaling strong conviction amid market uncertainty. Source: @TedPillows via X

Lee linked the market downturn to global uncertainty: “Investors are waiting for Jerome Powell’s speech at Jackson Hole before taking fresh positions.” The timing suggests Bitmine is positioning ahead of potential Fed policy shifts.

SharpLink Gaming followed a similar strategy, adding 143,593 ETH at an average price of $4,648. Since launching its treasury program in June, SharpLink has amassed over 740,000 ETH and earned more than 1,300 ETH in staking rewards.

Together, treasury firms now control over 4.1 million ETH, or 5% of the supply—an aggressive accumulation trend that could soften the impact of validator exits.

Network Activity and On-Chain Signals

Ethereum’s network activity has cooled sharply. Active addresses fell from 841,000 in late July to just 600,000, while new address creation dropped 28% in the same period. Lower adoption and weaker demand for block space are contributing to bearish sentiment.

Ethereum cools after a 40% rally as markets de-risk ahead of Jackson Hole, with dip-buying likely on looser rate expectations. Source: @JO_wintermute via X

Still, crypto analytics firm CryptoQuant highlighted the $160 billion stablecoin supply sitting on exchanges, calling it “dry powder” that could fuel the next rally. Historically, elevated stablecoin reserves have preceded major upswings in both Bitcoin and Ethereum.

Ethereum Price Prediction: Bullish Signal or Risky Bet?

In the short term, Ethereum faces a balancing act between heavy selling pressure and institutional accumulation. The $3,900–$4,400 range is shaping up as the key battleground. Arthur Azizov, founder of B2 Ventures, expects ETH to consolidate within this band until clarity emerges on Fed policy and tech stock performance.

Ethereum forms a bullish flag pattern, with analysts projecting a potential climb to $6,000–$8,000 long term. Source: Sensei via X

Longer term, optimism remains. Analysts project that Ethereum could climb to $6,000–$8,000 by year-end, fueled by treasury accumulation, ETF flows, and Layer 2 expansion.

Whether Bitmine’s bold $220 million move proves prescient or premature may depend on how the market digests the staking unlock and macro signals in the weeks ahead.