Ethereum’s price continues to face downward pressure, dipping towards $1,600 despite news that BitMine, a firm backed by Tom Lee, has acquired an additional 75,000 ETH, valued at around $123 million. This move, however, has not been enough to counter the broader market sentiment as traders scale back risk ahead of the upcoming U.S. inflation report.
At the time of writing, ETH was trading near $1,627, marking a nearly 4% decline in the last 24 hours. The cryptocurrency has shed about 14% since its June peak of $1,890 and remains roughly 66% below the 2026 high of $4,800 recorded earlier this year.
The latest downturn comes as market participants await the May Consumer Price Index data, with concerns over inflation and Federal Reserve policy weighing heavily on risk assets, including cryptocurrencies and equities.
Despite the selloff, BitMine appears to have increased its Ethereum holdings. On-chain data from Lookonchain reveals transfers of approximately 75,000 ETH from wallets linked to Kraken and FalconX to addresses associated with BitMine. This transaction, worth about $123 million, follows the company’s June 8 treasury update that reported holdings of 5.54 million ETH, representing 4.59% of Ethereum’s circulating supply. If confirmed as a purchase, BitMine’s total would rise to roughly 5.62 million ETH, or 4.66% of the total supply.
Corporate buying is happening against a backdrop of weak demand for exchange-traded funds. Data from SoSoValue indicates that U.S. spot Ethereum ETFs saw net outflows of $540.9 million in May and an additional $131.5 million in June so far. Total ETF assets have dropped to $9.13 billion from over $15 billion at the start of the year.
Rising oil prices and ongoing tensions in the Middle East have added to the uncertainty, while resilient U.S. economic data have dampened hopes for near-term monetary easing, keeping pressure on speculative assets like Ethereum.
BitMine’s accumulation contrasts with bearish positioning in the derivatives market. Ethereum open interest has fallen sharply from recent highs, with liquidation activity concentrated around key technical levels. A liquidation heatmap from CoinGlass shows large leverage clusters between $1,700 and $1,760, with another major concentration near $1,800. A move into these zones could trigger forced short liquidations, increasing volatility. On the downside, liquidity is concentrated around $1,550 and $1,500, which could act as magnets if sellers maintain control.
Market sentiment is divided. Crypto analyst Ali Martinez notes that Ethereum has entered a historically attractive accumulation zone based on on-chain metrics. He points out that the 0.8 MVRV Pricing Band from Glassnode is near the current price, and previous dips below this level have often marked long-term market bottoms.
From a technical perspective, weekly charts show Ethereum trading just above a major support region that has held since late 2022. The area between $1,510 and $1,620 is one of the most critical zones on the chart. Momentum indicators remain bearish, with the weekly RSI near 30, indicating oversold conditions, while the MACD is below its signal line with negative values.
Analyst Ted Pillows commented that Ethereum failed to reclaim its February lows after a recent rebound attempt, putting focus on the $1,550 support level. He warned that a break below that level could lead to new lows, potentially exposing the $1,400 psychological level, which aligns with liquidity concentrations in derivatives markets. Conversely, reclaiming $1,700 could bring the first major liquidation cluster into play, while a move above $1,800 might force a larger short squeeze.
For now, BitMine’s aggressive buying offers one of the few bullish counterweights to weak ETF flows, deteriorating momentum indicators, and a derivatives market that remains defensive ahead of key macroeconomic data.