Ethereum News Today: Ethereum Surges to $3,718 as BitMine Buys $970M in 7 Days to Hit 5% Supply Goal

Ethereum’s price surged to $3,718.70 on July 25, driven by a $970 million institutional buying spree led by BitMine Immersion Technologies over seven days. The firm’s acquisition of 266,119 ETH pushed its total holdings to 566,776 ETH, valued at approximately $2.06 billion, as it aims to secure 5% of the total Ethereum supply. BitMine’s chairman, Thomas Lee, outlined a strategy combining staking rewards, reinvested profits, and capital market engagement to achieve this target, while CEO Jonathan Bates highlighted ongoing mining operations in Texas and Trinidad to expand the firm’s treasury. The purchase follows a $250 million private placement on July 8, underscoring the company’s aggressive capital deployment [1].

Technical indicators suggest Ethereum faces potential short-term resistance. The Relative Strength Index (RSI 14) closed at 78.44, signaling overbought conditions—a level historically linked to temporary price corrections. Meanwhile, Bollinger Bands (20 SMA) positioned ETH near the upper range of $4,091.6, with the 50-day moving average reinforcing the strength of the bullish trend. Analysts caution that a breakdown below $3,576, the session’s low, could trigger consolidation, though upside momentum remains intact if support holds [1].

The market response was immediate, with trading volume on Bitstamp surging as investors speculated on BitMine’s influence. The firm’s public commitment to accumulating Ethereum has intensified discussions around institutional participation in crypto markets, though risks such as volatile capital cycles were explicitly acknowledged by BitMine leadership [1].

While the price surge aligns with BitMine’s accumulation strategy, the interplay between technical indicators and institutional activity raises questions about sustainability. The RSI’s proximity to 80 suggests a temporary pause may be imminent, but the broader trend remains bullish provided key support levels hold. Market participants are closely monitoring whether BitMine’s aggressive buying can overcome overbought conditions or if a correction will precede further gains [1].

Source: [1] [title: Ethereum Surges to $3,718 as BitMine Buys $970M in Just 7 Days] [url: https://coinmarketcap.com/community/articles/688386d29e81db1a55ae4b4a/]