- BitMine stock price could be on the cusp of a major bullish breakout.
- Ethereum has formed an ascending triangle pattern, pointing to a rebound.
- The company will likely conclude its Ethereum accumulation in July this year.
BitMine stock price has risen gradually in the past three days and is now hovering at its highest point since April 22nd. BMNR was trading at $22.90, up from the year-to-date low of $17. This rally may be about to spark higher as Ethereum nears a rebound, potentially to $3,000.
BitMine Stock May Surge as Ethereum Forms Ascending Triangle
The three-day chart suggests Ethereum price may be on the cusp of a strong bullish breakout in the near term. One major catalyst is that it has slowly formed an ascending triangle pattern, which is defined by a horizontal resistance and an ascending trendline.
In this case, the ascending trendline connects the lowest swings since February this year. It has constantly failed to drop below this trendline, a sign that it is finding some demand.
The token is now approaching the important resistance level at $2,500, which aligns with the 23.6% Fibonacci Retracement. Also, it is attempting to move above the 25-day Exponential Moving Average (EMA).
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The two lines of the Percentage Price Oscillator (PPO) are about to cross the zero line when pointing upwards. A move above that line will confirm the bullish outlook.
Therefore, the most likely scenario is that the coin continues rising, potentially to the psychological level of $3,000, which is slightly above the 38.2% Fibonacci retracement.
A strong Ethereum rebound will be highly bullish for BitMine, a company that owns over 5.078 million coins worth nearly $12 billion. It has bought 346k coins over the last 30 days and is accumulating 100k per week.
As a result, analysts predict that the company will conclude its Ethereum accumulation spree on July 3rd. After that, the substantial dilution that has been ongoing over the past few months will end, and the focus will turn to yield.
BitMine will generate yield by staking its Ethereum hoard, a move that will bring in over 180k coins over time. It will then use these coins to buy back its stock and to make opportunistic investments.
BMNR Stock Price Prediction: Technicals Point to More Gains
The daily timeframe chart shows that the BMNR share price has formed a double bottom at $17 and a neckline at $23.85, its highest point on March 16th. It has now moved above the 50-day Exponential Moving Average (EMA).
Also, the Relative Strength Index has moved above the neutral 50 level, while the PPO indicators have continued to rise.
Therefore, the most likely scenario is that the BMNR share price continues to rise as bulls target the key resistance level at $30. A move above that level will signal further gains, potentially to the key resistance level at $50.
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