On August 13, Bitmine announced plans to raise up to $20B to increase its Ethereum holdings, targeting 5% of circulating supply — a move that extended bullish sentiment. ETH has rallied to around $4.6K, testing the historic supply zone of $4.65K–$4.90K, overlapping the 2021 highs. The previous liquidity level at $4.20K has been swept and flipped into support, with deeper structural support near $3.3K.
Bitunix Analyst’s View:
Bitmine’s accumulation plan represents a long-term capital commitment with a positive impact on ETH’s supply-demand dynamics. However, it does not negate the short-term selling pressure within the historic supply zone. As institutional holdings increase, liquidity concentration rises — magnifying gains in bull markets but also accelerating declines during pullbacks. Traders should be wary of “buy the rumor, sell the news” reactions and avoid chasing solely on bullish headlines. With leverage in derivatives markets running hot, ETH faces dual pressure from historical resistance and overheated positioning, despite an intact long-term bullish outlook.
