BitMine stock price remains in a technical bear market as its unrealized losses jumped amid the ongoing crypto crash. BMNR was trading at $28.3, down sharply from the year-to-date high of $160.
BitMine Stock Pressured Despite Staking Hopes
Tom Lee’s BitMine stock has crashed into a bear market in the past few months, erasing most of the gains it made earlier this year. This crash coincided with the ongoing Ethereum price plunge and the woes in the digital asset treasury (DAT) companies industry.
BitMine is affected by the ongoing crypto market crash because of its large Ethereum and Bitcoin holdings. It now holds over 4 million ETH tokens, 193 Bitcoins, and a $32 million in Eightco.
The main BitMine news today is that the company has started to stake its ETH holdings. It has staked over $1 billion worth of ETH in the past few days.
BitMine now holds ETH tokens worth over $12 billion, meaning that it has a chance to earn over $338 million in staking rewards annually. Ethereum has a staking yield of 2.87%. The company will make more money over time as it hopes to accumulate 5% of the supply.
Ethereum Price Technical Analysis
As the biggest Ethereum holder, there is a likelihood that the BitMine stock price will be affected by its price action. Technical analysis suggests that the coin has more downside in the coming months.
The daily chart shows that ETH price has crashed from the year-to-date high of $4,965 in August to the current $2,945. It formed a death cross pattern on November 24, and is now in the process of forming a head-and-shoulders pattern, a common bearish reversal sign.
Ethereum price has crashed below the Supertrend indicator, while top oscillators point to more downside in the near term. It has also moved below the 50% Fibonacci Retracement level at $3,188.
Therefore, the most likely Ethereum price prediction is bearish, with the initial target being at $2,627, its lowest level in November. A drop below that level will point to more downside, potentially to the psychological level at $2,500. There are also odds that the token will drop to the key support at $2,000.
BMNR Stock Price Technical Analysis Points to More Downside
The daily chart shows that the BMNR stock price has dropped from the year-to-date high of $160 to the current $28.30. It recently plunged below the 50-day and 200-day Exponential Moving Averages, confirming the bearish outlook.
BitMine share price has also dropped below the Supertrend indicator, a highly bearish sign. It has also formed a descending triangle pattern, which is made up of a horizontal line and a descending trendline. In this case, the horizontal line is at $26 and the descending trendline connects the highest swings since August.
Therefore, the stock will likely have a strong bearish breakout in the coming weeks now that a death cross pattern is nearing. Such a move may see it drop below $20.
To be clear: BitMine stock will likely rebound in the long term because of Ethereum’s fundamentals. Ethereum continues to gain its market share in key industries like decentralized finance and real-world asset tokenization.
Also, its supply in exchanges continues to fall, a sign of accumulation. As such, the coin will likely rebound to $5,000 in the long term.
