- BitMine stock price crashed below a key support level.
- Ethereum metrics have continued weakening in the past few months.
- Technicals suggest that the stock has more downside to go.
BitMine stock price fell below a key support level as the crypto market crash accelerated. New data also showed that Tom Lee’s argument for Ethereum was weakening. BMNR closed at $17.63, its lowest price since last February.
The Case for Ethereum is Weakening
There are signs that Tom Lee’s justification for Ethereum accumulation is unraveling in real time. For one, third-party data shows that Ethereum is not the coin it was a few months ago.
For example, data compiled by RWA show that real-world assets in the network have continued to fall. The distributed asset value dropped by 3.56% in the last 30 days to over $16.65 billion. Also, the 30-day RWA transfer volume on Ethereum dropped by 32% to $13.3 billion.
More data show that Ethereum’s total value locked (TVL) plunged to $40 billion, down from last year’s high of $95 billion. Most of the decline accelerated after the recent KelpDAO hack, which had a major impact on Aave, the biggest player in its ecosystem.
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Most importantly, there are signs that Hyperliquid has significantly disrupted its business. For example, Hyperliquid handled over $180 billion in perpetual volume in the last 30 days. In contrast, all perpetual DEX futures on Ethereum handled $50 billion in volume. All its DEX networks, including popular names like Uniswap, Fluid, and Dodo, handled over $34 billion in assets.
Ethereum is also not earning the fees it did a few years ago, when it was the most dominant player. Data show that the network made over $39 million in the first quarter and $42 million in the current one. At its peak, Ethereum was making over $4.2 billion a quarter. Hyperliquid, on the other hand, has made over $400 million this year.
These numbers mean that the case for Ethereum accumulation is fading as the network is much different from it was a few years ago. This explains why ETH ETF outflows have accelerated this year.
BitMine Stock Price Technical Analysis
The daily chart shows that BMNR stock has crashed over the past few days. It has now crashed below the important support level at $18.30, its lowest level in February, March, April, and May this year. That is a sign that bears have prevailed.
The stock has remained below all moving averages, while the Relative Strength Index (RSI) has continued falling. It has moved below the neutral level and is nearing the oversold level.
Therefore, the stock will likely continue falling, potentially to the key support level of $15. A break below $15 could open the possibility of the stock dropping to $10.
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