On August 13, Bitmine plans to raise up to $20 billion to increase its Ethereum holdings, targeting 5% of circulating supply, with market sentiment continuing to warm up. ETH has risen to around 4600, testing the historical supply zone of 4650-4900 that overlaps with the 2021 high point; the previous high liquidity level of 4200 has been broken through and turned into support, with structural support below at 3300.
Bitunix analyst suggests:
Bitmine's increase plan belongs to a "long-term capital commitment", which has a positive impact on supply and demand structure, but this is a medium to long-term factor that cannot change the short-term market's pressure in the historical supply zone. Meanwhile, the increase in institutional holdings will raise liquidity concentration, which will amplify gains in a bull market but also intensify declines during pullbacks. It is necessary to pay attention to the market's potential "buy the rumor, sell the fact" reaction, so it is not advisable to chase high prices solely based on positive factors. Currently, with prices near the historical supply zone and derivatives leverage being hot, although the long-term bullish logic remains unchanged, the short-term faces dual pressure from the supply wall and excessive leverage.
