BitMine increases buying: Is Ethereum facing a reversal opportunity?

Ethereum (ETH) plummet 8% in the past 24 hours, despite the information that BitMine has just announced that it has expanded its reserves to 3.72 million ETH just in the past week.

BitMine buys more ETH despite large unrealized losses

The Ethereum BitMine Immersion treasury company continues to accelerate its ETH accumulation after another week of large-scale purchases.

A Nevada-based company announced that it has purchased an additional 96,798 ETH over the past week, bringing its total Ethereum holdings to over 3.72 million ETH – equivalent to about 3% of the total circulating supply of ETH in the market. BitMine aims to own up to 5% of the circulating supply of the world's second-largest cryptocurrency.

According to BitMine, the factors driving the aggressive ETH accumulation strategy include the upcoming Fusaka upgrade on the Ethereum network, a tightening quantitative environment, and expectations that the U.S. Federal Reserve will begin to lower interest rates on December 10. “The convergence of these factors creates positive momentum for ETH prices, which is why we have increased our weekly ETH purchase volume by 39%,” said BitMine Chairman Thomas Lee in a statement released on Monday.

In addition to Ethereum, the company currently holds 192 Bitcoin (BTC), an investment worth 36 million USD in the Worldcoin (WLD) treasury of Eightco Holdings, along with unrestricted cash amounting to 882 million USD.

The buying activity comes amid a significant decline for Ethereum, which ended November down by 22.3%. The weakening trend has continued into December, with ETH plummeting over 8% in the past 24 hours. According to data from CryptoQuant, BitMine is currently facing an unrealized loss of approximately 3.9 billion USD.

With the current holding scale, BitMine is the largest Ethereum treasury on the market, far ahead of the second treasury, SharpLink Gaming – which holds 859,395 ETH.

Ethereum Price Forecast: ETH falls below 2,850 USD, heading towards the support zone near 2,620 USD

Ethereum just experienced a strong “plummet” with up to 228.6 million USD in futures contracts being liquidated in the past 24 hours, of which the long positions (Long) accounted for a dominant 209.9 million USD, according to data from Coinglass.

Selling pressure has increased, causing ETH to lose the important support level of 2,850 USD and is currently sliding towards the short-term support area at 2,623 USD. This adjustment comes after the price was rejected at the resistance zone of 3,100 USD last week. Notably, the 3,100 USD area also coincides with the 20-day EMA ( – a technical barrier that has repeatedly halted ETH's recovery efforts since the leverage purge on October 10.

![])https://img-cdn.gateio.im/webp-social/moments-4976f723a655b653aa2cdc7f6da63137.webp(ETH/USDT daily chart | Source: TradingViewIn a positive scenario, ETH could soon regain the 2,850 USD level if buying pressure appears at the 2,623 USD area. However, if this support area is breached, the largest altcoin in the market risks falling deep towards the 2,330 USD mark – an area close to the average cost price of all ETH investors.

From a technical indicator perspective, both the RSI and Stochastic Oscillator are continuing to plummet towards the oversold region, indicating that the bearish momentum is still prevailing and there are no clear signs of weakening.

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