BitMine stock has soared in recent days, rising from a low of $25.35 on November 21st to its current $40 as the Ethereum accumulation strategy continues.
summary
- BitMine's stock price has gradually increased over the past few weeks.
- A potential rebound in Ethereum price is likely to push the stock higher.
- Technical analysis suggests that ETH and Bitmine stocks have further upside potential going forward.
Tom Lee's Bitmine Benefits from Ethereum Price Recovery
BitMine Immersion has grown from a small-cap Bitcoin (BTC) miner to the world's largest holder of Ethereum. He bought 359,228 coins in the past 30 days, bringing his total holdings to 3.864 million coins, which are now valued at over $12.36 billion.
Key fundamentals and technicals point to a surge in Ethereum price. First, data shows that the supply of Ethereum on exchanges continues to decline and is currently at an all-time low.
The supply of ETH is decreasing due to continued accumulation by exchange-traded funds, stakers, and digital asset treasury companies such as Bitmine. Whale investors continue to add to the coin, indicating that they expect the coin to recover in the coming weeks.
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Second, Ethereum (ETH) price is likely to benefit from continued ecosystem growth. According to data, the network has become the most widely used chain in the growing real-world asset tokenization industry. The company has $12 billion in tokenized assets and has significant market share in an industry valued at over $18.45 billion.
Ethereum still dominates other industries such as decentralized finance, non-fungible tokens, and stablecoins. In a recent statement, Kevin O'Leary predicted that most niche Layer 2 and Layer 1 networks will eventually become zero.
Technical analysis suggests that ETH price has formed a descending wedge pattern on the daily chart, suggesting more upside. This pattern often leads to further gains and may even move higher in the short term.
Ethereum price chart |Source: crypto.news
If the value of Ethereum coins increases and begins a recovery, BitMine stock is likely to rebound. For example, if it soars to an all-time high of $4,945, the value of Ethereum holdings would increase from its current $12.36 billion to more than $18 billion, exceeding its current market cap of $17.2 billion.
Meanwhile, unlike Michael Saylor's strategy, Bitmine plans to monetize its Ethereum holdings through staking, with an annual return of 2.9%. BitMine expects this to be around $400 million annually. The company will achieve this by launching its staking solution MAVAN.
BitMine stock price technical analysis
The daily timeframe chart shows that BMNR stock has recovered from its November low of $25.35 to its current level of $40. The Supertrend indicator is currently flipping from red to green, which usually signals further upside.
The Relative Strength Index has risen from an oversold level of 28 to its current level of 55, indicating that momentum is building.
BMNR Stock Price Chart |Source: TradingView
Therefore, the stock is likely to continue rising as the bulls target the next key resistance level, the October 7th high of $64.40. This is about 58% above current levels.
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