Ethereum hovered near $2,400 on Tuesday after reversing modest gains from the early Asian session, even as BitMine Immersion Technologies announced another addition to its treasury.
The company purchased 12,535 ETH last week, extending a weekly buying streak dating back to June 30, 2025.
The acquisition increased its holdings to more than 6.041 million ETH, valued at approximately $14.3 billion. Against the supply of 122.1 million ETH, it represents roughly 4.9%.
The purchase brings BitMine closer to its stated ambition of accumulating 5% of Ethereum’s circulating supply, a strategy it calls “the alchemy of 5%.”
However, the additional corporate demand was insufficient to sustain Ethereum’s early recovery as broader market pressures persisted.
Thomas Lee sees opportunity in market weakness
BitMine Chairman Thomas Lee attributed recent weakness in risk assets to a combination of macroeconomic and technology-sector concerns.
These included rising AI capital expenditure, AI safety risks, continuing US-Iran conflict, uncertainty ahead of US midterm elections, and higher bond yields globally.
Lee said selling in Asian semiconductor and memory stocks could also spill into cryptocurrencies as investors reduce risk across their portfolios.
“Crypto is widely held in the US, Korea, and Taiwan. So naturally, when investors in those regions de-risk, this creates spillover pressures in crypto markets,” he said.
Lee argued that falling prices can create attractive opportunities when underlying fundamentals remain strong.
He pointed to crypto’s potential role in modernizing financial infrastructure and supporting AI agents as reasons for BitMine’s continued confidence.
That assessment reflects the company’s investment view rather than assurance that Ethereum’s correction has ended.
While BitMine continued accumulating ETH, demand through US spot Ethereum ETFs remained weak.
The funds recorded approximately $320 million in net outflows last week, according to SoSoValue data. That marked their third consecutive week of withdrawals.
The outflows continued this week, with the funds losing $103 million on Monday. The contrast highlights differing behavior across investment channels: BitMine expanded its treasury while ETF investors collectively reduced exposure.
Ethereum derivatives also experienced substantial volatility. Futures liquidations totaled approximately $42.58 million over 24 hours, including more than $23 million in long positions.
The concentration in long indicates that downward price swings forced bullish leveraged positions to close, as Ethereum struggled to maintain its recovery.
Ethereum technical outlook: Moving averages continue to cap ETH’s recovery
Ethereum’s daily chart retains a bearish near-term bias, with the price below its 50-day Exponential Moving Average near $2,483 and its 20-day EMA around $2,504.
Those averages form the first significant resistance zone. A sustained move above both would strengthen the recovery case and bring horizontal resistance at $2,548 into focus.
Further upside barriers stand at $2,637 and $2,782. Momentum indicators remain subdued.
The Relative Strength Index sits in the high 30s, while the Stochastic Oscillator is near the low 20s. These readings suggest weak momentum, although they do not rule out short-term rebounds.
Until Ethereum reclaims its shorter-term moving averages, rallies remain vulnerable to renewed selling.
The first important support zone lies between $2,351 and $2,355, where the 100-day EMA aligns with a horizontal price level.
Holding that area would preserve a technical floor beneath the current market. A sustained breakdown would weaken the outlook and expose the next support near $2,205.
If selling continues beyond that level, deeper support sits at $1,972 and $1,828. For investors planning to hold ETH through the volatility, choosing among crypto wallets remains an important custody consideration, although secure storage does not protect against price declines.
For now, Ethereum’s ability to defend $2,351–$2,355 and recover above $2,483–$2,504 will provide a clearer test of whether buying demand can overcome persistent selling pressure.
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