- BitMine targets 5% of Ethereum, fueling massive market speculation.
- Ethereum price hits $3,718 after $970M institutional buying spree.
- Overbought RSI suggests possible short-term resistance for Ethereum bulls.
Ethereum continued its bullish run, reaching a closing price of $3,718.7 on July 25 after trading between $3,576.5 and $3,746.4 during the session. This price movement aligns closely with the recent buying spree by BitMine Immersion Technologies, which acquired 266,119 ETH valued at $970 million over the past week.
In the official announcement, chairman Thomas Lee revealed that BitMine aims to secure 5% of the total Ethereum supply. This has now increased the number of Ethereum belonging to the firm to 566,776 ETH, which is valued at about 2.06 billion dollars.
The takeover follows a 250 million private placement on July 8, indicating an ambitious capital deployment strategy to increase the reserves quickly.
According to the announcement made by the company’s chairman, Thomas Lee, BitMine will seek to own 5 percent of the entire Ethereum supply. This will be achieved through staking rewards, reinvested profits, and capital market engagement. Capital costs, especially volatile market cycles, were also among the main points mentioned by BitMine.
Jonathan Bates, the firm CEO, repeated the ticket on the Ethereum-centered expansion. The operations are still in Pecos and Silverton, Texas, and Trinidad, where the company does mining and strategic asset purchases to increase its treasury.
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Technical Indicators Point to Overbought Conditions as ETH Nears $3,750
Ethereum’s technical chart shows sustained bullish momentum, with prices remaining well above key averages. The Bollinger Bands (20 SMA) currently stand at $3,240.3 (middle band), $2,389.0 (lower band), and $4,091.6 (upper band), placing ETH near the upper range. Based on the distance between the price and the 50-day moving average, the Bollinger Bands indicate that the current trend is quite strong.
Relative Strength Index ( RSI 14 ) finished the day at 78.44, indicating an overbought market condition. This stage signifies that ETH might experience temporary hindrance, or it will start consolidating. In the past decade, when the RSI values come close to 80, prices temporarily pull back.
The volume of trading on Bitstamp increased, and interest in the market increased after BitMine announced its accumulation.
Even though the signs of overbought may be considered, the upside momentum is still strong, provided ETH does not break the support at the level of $3,576.
The increase in Ethereum to $3,718 seems closely connected with BitMine’s enormous accumulation of ETH. With technical indicators showing both strength and caution, the market is likely to watch closely for signs of either continued momentum or a short-term correction.
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