Ethereum price has crashed into a bear market after falling by over 27% from its highest level this year, a plunge that coincided with the ongoing crypto market crash affecting Bitcoin and most tokens. This article explores why the ETH price may rebound soon amid BitMine’s buying spree.
Ethereum Price Chart Points to a Rebound
The daily timeframe chart shows that ETH has retreated over the past few months, falling from a high of $4,952 to its current price of $3,600.
On the positive side, the coin has moved to the 38.2% Fibonacci Retracement level at $3,592. It has bottomed at the 200-day Exponential Moving Average (EMA).
Ethereum price has also moved to the lower side of the descending channel that has been forming since August this year. This channel is part of the bullish flag pattern, a popular continuation sign in technical analysis.
The coin has moved slightly below the Major S/R pivot point of the Murrey Math Lines tool.
Therefore, the coin will likely bounce back once the ongoing shakeout continues. If this happens, the next key level to watch will be at the top of the trading range at $4,062. A move above that level will signal further gains, potentially to the strong pivot reversal point at $4,375.
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On the other hand, a move below the channel’s lower boundary will invalidate the bullish outlook for the flag pattern and signal further downside, potentially to the ultimate support level at $2,500.
BitMine ETH Accumulation Continues
One potential catalyst for the ETH price is that Tom Lee’s BitMine has continued to accumulate it, a sign that investors anticipate it will resume its uptrend.
The company has added over 662,169 coins in the last 30 days, bringing its holdings to over $11.2 billion. It most recent purchase of these coins happened last week, and the cash-rich company is expected to continue the process.
Other Ethereum treasury companies have continued to accumulate the token in the past few months. SharpLink bought almost 20,000 coins in the last 30 days, bringing its holdings to $3 billion. Other companies that have added Ethereum to their treasuries include Bit Digital, ETHZilla, Coinbase, and BTCS.
Ethereum is also benefiting from the robust ETF inflows as American investors continue allocating cash to the coin. These ETFs have had inflows worth over $14.37 billion since July last year, with their net assets soaring to $26 billion.
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