As BitMine approaches its goal of accumulating 5% of the Ethereum supply, there hangs a question: will Ethereum be able to recover and cross above $4,000?
BitMine Immersion Technologies, Inc. (Ticker: BMNR) is a U.S.-listed crypto treasury and asset accumulation company, led by Tom Lee. Chasing a target of accumulating 5% of the Ethereum circulating supply, the crypto treasury staked another 171,264 ETH, taking its total staked amount to 1.94 million ETH worth about $5.71 billion.
With this acquisition, the treasury holds around 4 million ETH, which is about 3.5% of the circulating supply. As the treasury has some more to acquire to hit that 5%, the crypto community is wondering if the ETH price will cross $4,000 given that BitMine manages to bag the rest of the amount.
Around 120 million ETH is circulating in the market, and 5% of that amount means 6 million. So BitMine already has 3.5%, which is equivalent to nearly 4 million ETH; it nearly needs about 2 million ETH to hit its target of 5%.
Historically BitMine’s ETH acquisition has been in a range from 20,000 to 30,000 ETH per transaction or block when buying in tighter chunks. However, when larger weekly accumulation is considered, the treasury has bought in a range from 100,000 to 140,000+.
With the prevailing geopolitical tension, BitMine might go ahead with this same pattern or maybe look for a different strategy. Whatever the strategy may be, there is one that is clear, and that is BitMine will buy more ETH.
On the daily chart, ETH is now lagging close to the lower trendline of the ascending triangle, which is a bullish pattern. As ETH continues to trade inside the pattern, it should technically hit the lower trendline and bounce back to the upper trendline, which is above $3,300. However, as the coin approaches this level, it has to overcome the resistance at the 50-day moving average, which is just around $3,100. BitMine’s next acquisition might come in handy to break above this level and head towards $3,300.
Once a coin completes this pattern, it should break out from the top trendline and head above $3,500 and reach $4,000. However, the prevailing market conditions and geopolitical tension will play a large role in the time ETH takes to hit this psychological level of $4,000.
