Key Takeaways
- BitMine keeps buying, but Ethereum’s price remains weak.
- Tom Lee previously said capitulation is near.
- Analysts warn of lower risk.
BitMine, chaired by Fundstrat’s Tom Lee, has continued its aggressive Ethereum buying spree, snapping up tens of millions of dollars’ worth of the token even as ETH prices struggle to regain the $2,000 level.
The aggressive accumulation comes amid what Lee has described as a crypto “mini-winter,” with sentiment languishing near levels last seen during prior market bottoms.
Yet despite the aggressive institutional demand, Ethereum’s price has failed to mount a sustained rebound.
BitMine Accelerates Ethereum Purchases
BitMine, chaired by Fundstrat’s Tom Lee, said it bought 45,759 Ethereum last week for about $90 million, its biggest weekly purchase of the year, as the firm continues to build an Ethereum-heavy treasury.
The buying has extended into this week.
Market commentator Ted Pillows said the company added roughly $68.7 million worth of ether in recent days, noting that Ethereum’s price has still struggled to stay above $2,000.
BitMine now holds about 4.37 million ETH, around 3.6% of circulating supply, and has said it is targeting a 5% stake under what it calls its “Alchemy of 5%” strategy.
The company recently reported $9.6 billion in assets and $670 million in cash, while staking a large share of its holdings for an annualized yield of roughly 2.9%.
Despite the strategy, the firm is estimated to be sitting on billions of dollars in unrealized losses after accumulating during higher price levels.
Lee Calls a Bottom, but Skepticism Lingers
Lee has argued that deteriorating sentiment and weak price action suggest the market is in the final stages of capitulation, a pattern he likens to the depths of the 2018 downturn and the November 2022 lows.
In recent interviews, Lee said investor psychology is marked by “forlornness and dejection,” conditions he views as typical near cyclical bottoms.
Unlike previous crypto winters, however, he noted the absence of major systemic failures among industry players.
Citing analysis from technician Tom DeMark, Lee said Bitcoin could fall toward $60,000 while Ethereum’s price may find a floor around $1,890 after losing support near $2,400.
He added that Ethereum has effectively reached that target area and may require “one more undercut” before establishing a durable low.
Lee has said he expects the broader crypto downturn to end by April at the latest.
Ethereum Price Signals Point Downward
Analysts have maintained a cautious outlook.
On Wednesday, Victor Olanrewaju, an analyst at CCN, said Ethereum’s short-term structure remains bearish.
He identified $1,900 as the next key support level, warning that a decisive break below it could open the door to $1,800 or lower.
At the time of reporting, Ethereum was trading at $1,946.
Why Ethereum’s Price Isn’t Moving
BitMine’s steady buying has not pushed prices higher, showing that the market can absorb large spot purchases without shifting the broader trend.
One reason is that macro selling pressure remains dominant, with traders still de-risking amid weak sentiment and a broader downtrend in major crypto assets.
In that environment, even sizable corporate accumulation can be outweighed by the heavy risk-off environment.
