Ethereum faces growing pressure despite massive BitMine purchases

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Ethereum faces growing pressure despite massive BitMine purchases

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Mykhailo Ihnatenko

1 hour ago

Ethereum faces growing pressure despite massive BitMine purchases

Ethereum remains under pressure despite aggressive accumulation by BitMine. Continued ETF outflows, Bitcoin's weakness, and expectations of tighter Federal Reserve policy are currently outweighing the positive impact of corporate demand.

BitMine purchased an additional 52,203 ETH over the past week. As a result, the company's total holdings have surpassed 5.67 million ETH, representing approximately 4.7% of Ethereum's total supply. Such a concentration highlights that some large investors continue to view ETH as a strategic long-term asset.

However, many market participants have begun referring to BitMine as a potential "black swan" risk for Ethereum, drawing comparisons to Strategy's influence on the Bitcoin market.

Despite corporate accumulation, institutional demand remains mixed. According to SoSoValue, spot Ethereum ETFs continue to record net outflows. On June 22 alone, investors withdrew more than $66 million, marking the seventh consecutive week of net outflows.

Additional pressure is coming from macroeconomic expectations. Analysts at Bank of America forecast three Federal Reserve rate hikes before the end of the year. Higher borrowing costs traditionally weigh on risk assets, including cryptocurrencies.

Sellers defend the descending trendline

As mentioned in our previous analysis, ETH continues to trade below a local descending trendline, which remains a significant resistance level.

The primary downside target for today is $1,650, where an important support zone and a concentration of short-term trader liquidity are located. A decisive break below this level would significantly increase the probability of a decline toward $1,570, where the next major demand zone and previous buyer activity can be found.

Another negative factor remains the structure of trading volumes. Following the sell-off in late May and early June, market activity surged significantly. However, trading volumes declined sharply during the subsequent consolidation phase.

This pattern typically signals a continuation of the prevailing medium-term trend.

Liquidity remains Ethereum's biggest problem

At the moment, Ethereum finds itself caught between two opposing forces.

On one hand, large-scale purchases by BitMine demonstrate strong conviction among certain institutional investors regarding Ethereum's long-term prospects. On the other hand, continued ETF outflows, Bitcoin's weakness, and expectations of a more hawkish Federal Reserve continue to limit fresh capital inflows into the market.

In the coming weeks, Bitcoin's performance is likely to remain the key driver for ETH. If BTC can stabilize and attract renewed buying interest, Ethereum may have an opportunity to recover. Otherwise, the risk of further downside remains elevated.

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