- Bitmine’s $5.26B Ethereum purchase signals major corporate pivot from Bitcoin.
- Whale wallets add 400K ETH as traditional funds reduce holdings amid volatility.
- Strong support at $3,700–$4,000 could fuel Ethereum’s rally toward $4,800.
Ethereum is witnessing a striking divergence in market behavior. While major funds like Fidelity, Grayscale, and Bitwise trimmed their Ethereum holdings, new data from Arkham reveals that Tom Lee and Bitmine Immersion Technologies have taken the opposite route.
Instead of reducing exposure, Lee’s company has aggressively accumulated ETH, transforming itself into one of the largest corporate holders of the asset. This growing divide highlights a broader debate among investors about Ethereum’s long-term role in the digital economy.
Bitmine’s Bold Bet on Ethereum
Bitmine, once focused primarily on Bitcoin mining, has dramatically shifted its strategy. Backed by investor Peter Thiel, the firm paused Bitcoin operations and allocated capital into Ethereum.
In just 35 days, Bitmine acquired more than 1.17 million ETH at an average cost of $3,492 per coin. This purchase, totaling $5.26 billion, makes Bitmine the largest Ethereum treasury holder in the corporate space and the third-largest public crypto treasury overall. Only MicroStrategy and Marathon Digital hold more digital assets.
Related: Ethereum (ETH) Sees Massive Bounce from “Strong Support Block,” Analyst Vindicated
This pivot from Bitcoin to Ethereum suggests a strong belief in Ethereum’s role beyond a store of value. Unlike Bitcoin, which is often labeled digital gold, Ethereum provides broader utility through smart contracts and decentralized applications. By moving its balance sheet heavily into ETH, Bitmine is betting that demand for this utility will drive long-term value.
Arkham and Whale Accumulation Trends
Arkham’s data shows a contrasting pattern among institutional investors. While some traditional asset managers sold portions of their ETH holdings, whales quietly accumulated more than 400,000 coins during recent dips.
Ali Martinez noted that wallets holding between 10,000 and 100,000 ETH now control nearly 29.43 million ETH. This surge points to a growing appetite from larger players who see pullbacks as buying opportunities.
Key Support Levels Ahead
According to Martinez, Ethereum’s heatmap highlights two critical support zones at $4,000 and $3,700. Nearly 419,000 ETH has been accumulated around $3,673 to $3,686, signaling strong conviction at this level.
Another cluster sits near $4,000, reinforcing the idea that this level is pivotal for the asset. If Ethereum holds above these supports, momentum could push the price toward resistance zones near $4,600 to $4,800. However, slipping below $3,700 could invite broader selling pressure.
Related: Ethereum Price Analysis: Here is Why an ETH Revenge Rally is Next
ETH Market Outlook
Ethereum’s price stands at $4,339, up 4% in the last 24 hours despite losing 7% over the past week. With a market cap above $525 billion, Ethereum remains the second-largest cryptocurrency.
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Source: https://coinedition.com/ethereum-sees-diverging-moves-as-institutions-sell-while-bitmine-builds-a-5-2b-eth-treasury/