Ethereum News Today: BitMine Buys 4,871 ETH for $21.3M as Tom Lee Predicts ETH Bottom Near $4,300

Fundstrat Global Advisors' managing partner, Tom Lee, has indicated that Ether (ETH) is likely to reach a near-term bottom "within the next few hours," coinciding with a significant purchase of 4,871 ETH by BitMine. This move, valued at $21.3 million according to Arkham Intelligence, has been interpreted as a bullish signal amid a broader crypto market downturn [1]. At the time of Lee’s announcement on X, Ethereum was trading near $4,300 after dropping over 7% to hit a low of $4,313 on Coinbase. The timing of the purchase and Lee’s call suggest a coordinated strategy to accumulate Ether at discounted prices [2].

The purchase brings BitMine’s total ETH holdings to 1.72 million, valued at approximately $7.5 billion at current prices. This positions BitMine as one of the largest institutional holders of Ether, with a 40% share of the total 4.3 million ETH held by corporate entities [3]. The company’s aggressive accumulation strategy has been ongoing, with recent disclosures showing a $2.2 billion increase in crypto and cash holdings over the past week. BitMine’s net asset value per share has risen to $39.84, up from $22.84 in late July, indicating growing confidence in the long-term value of Ethereum [4].

Lee’s prediction has been supported by Mark Newton, managing director of technical strategy at Fundstrat, who expressed skepticism about ETH breaking below key support levels. Newton suggested that a consolidation near $4,300 could be the catalyst for a rebound, with potential price targets ranging from $5,100 to $5,450 [5]. While such forecasts are not guarantees, they reflect a consensus among institutional investors that Ethereum’s fundamentals remain strong despite short-term volatility.

The broader market context includes a sharp decline in Bitcoin (BTC), which hit a seven-week low on Tuesday morning, contributing to the overall bearish sentiment. However, the fact that Ether has already shown signs of recovery, returning to trade above $4,430, suggests that the market may be approaching a turning point. BitMine’s continued buy-the-dip strategy underscores the growing institutional interest in Ethereum, particularly as leverage and speculative activity in the market remain under scrutiny.

The actions of BitMine and other major treasuries, including Michael Saylor’s MicroStrategy, which recently purchased 3,081 BTC for $357 million, indicate that large-scale investors are using market corrections as opportunities to build positions. This trend could signal a shift in market dynamics, where institutional buying pressure begins to outweigh short-term selling.

As the market awaits the next few hours of trading, Lee’s forecast and BitMine’s accumulation efforts remain key factors to watch. Whether or not the predicted bottom materializes, the combination of strategic buying and technical analysis suggests that Ethereum may be entering a phase of increased stability and potential upward momentum.

[1] https://cointelegraph.com/news/tom-lee-eth-will-bottom-within-hours-bitmine-buys-more