Ethereum price analysis after BitMine buys another 75,000 ETH

Ethereum price fell towards the $1,600 level despite reports that Tom Lee-backed BitMine gained another $75,000 $ETH It is worth about $123 million as traders continue to reduce risk in the face of the latest US inflation figures.

According to market data, Ethereum ($ETH) It is trading around $1,627 at press time, after falling almost 4% in the past 24 hours. The token is currently down about 14% from its June high of around $1,890 and remains about 66% below its 2026 peak of about $4,800 recorded earlier this year.

$ETHThe company’s recent weakness was revealed ahead of May’s Consumer Price Index report, as uncertainty around inflation and Federal Reserve policy continue to put pressure on risk assets, both cryptocurrencies and equities.

Despite the decline, one of Ethereum’s largest corporate holders appears to be continuing to increase its positions. Lookonchain identifies approximately 75,000 new transfers $ETH Transferred from wallets linked to Kraken and FalconX to addresses associated with BitMine.

The deal, worth about $123 million, came on the heels of the company’s June 8 financial update, which showed holdings at $5.54 million. $ETHequivalent to 4.59% of Ethereum’s circulating supply. If additional purchases are confirmed, BitMine’s balance will increase to approximately 5.62 million $ETHor 4.66% of supply.

Corporate accumulation is accelerating even though demand for exchange-traded funds (ETFs) remains weak.

The U.S. Spot Ethereum ETF recorded net outflows of $540.9 million in May, and another $131.5 million in net outflows so far in June, according to SoSoValue data. The ETF’s total assets fell to $9.13 billion from more than $15 billion at the beginning of the year.

Rising oil prices and continued tensions in the Middle East have added further uncertainty to the crypto market. Speculative assets such as Ethereum also remain under pressure as traders adjust their interest rate expectations after a series of solid U.S. economic reports dampened hopes for near-term monetary easing.

BitMine buying contrasts with bearish derivatives positioning

Bitmine’s latest acquisition comes at a time when futures traders continue to reduce their exposure. Ethereum’s open interest has fallen sharply from recent highs, but liquidation activity remains concentrated around key technical levels.

CoinGlass liquidation heatmap data shows a large leverage cluster located between $1,700 and $1,760, with another major concentration near $1,800. Moving into these zones can trigger forced short liquidations and increase volatility. On the downside, liquidity remains concentrated around $1,550 and $1,500, creating a potential magnet if sellers maintain control.

Market sentiment remains divided. According to crypto analyst Ali Martinez, Ethereum has entered historically attractive accumulation territory based on on-chain valuation metrics.

“Ethereum $ETH Below the 0.8 MVRV price range is likely to be a long-term accumulation zone. Buy the dip! ”

The attached chart shared by Martinez shows that Glassnode’s 0.8 MVRV price range is close to Ethereum’s current price. Drops below historical levels often coincided with long-term market troughs or periods of accumulation.

Technical chart focuses on $1,550 support

The weekly chart shows that Ethereum is trading just above the key support area that has been holding since the end of 2022. The area between $1,510 and $1,620 currently represents one of the most important technical zones on the chart.

Momentum indicators continue to favor the bears. The weekly RSI has fallen to around 30 and Ethereum is close to oversold territory, while the MACD remains below the signal line and continues to record negative values.

Commenting on the latest structure, cryptocurrency analyst Ted Pillows noted that Ethereum was unable to regain its February lows after its recent rebound attempt.

“$1,550 is Ethereum’s next support zone and it cannot hold. $ETH It will fall to new lows. ”

A break below $1,550 could expose the psychological $1,400 level, which is consistent with the concentration of liquidity seen on derivatives exchanges. Conversely, a return to $1,700 could trigger the first large cluster of liquidations, and a break above $1,800 could force a larger short squeeze.

For now, BitMine’s aggressive accumulation strategy provides one of the few bullish counterweights to a derivatives market that remains in a defensive position in the face of weak ETF flows, deteriorating momentum indicators, and key macroeconomic data.