Ethereum Momentum Fades: BitMine Main Buyer

Have you ever watched a rocket lose thrust mid-flight? That’s exactly what Ethereum feels like right now. After soaring past $4,000 just weeks ago, the second-largest cryptocurrency is sputtering, and the fuel—once abundant institutional money—seems to be running low.

The Shift in Ethereum’s Institutional Landscape

In the crypto world, momentum can vanish overnight. One month you’re riding waves of fresh capital; the next, you’re staring at empty order books. Recent data paints a stark picture for Ethereum: the enthusiastic buying that defined summer has given way to caution, and perhaps even retreat.

Exchange-traded funds, hailed as the bridge between traditional finance and digital assets, were supposed to change everything. And for a while, they did. Billions poured in. But now? The tide has turned, and not gently.

ETF Inflows: From Flood to Trickle

Let’s rewind to July. Ethereum ETFs were the hottest ticket in town. Net inflows hit an eye-watering $5.2 billion. August followed with $3.4 billion more. Investors couldn’t get enough. It felt like the beginning of something massive.

Then September arrived, and reality set in. Inflows plummeted to a mere $300 million. October managed a modest recovery—$600 million—but that was still a fraction of earlier peaks. The excitement had evaporated.

The momentum behind Ethereum ETFs has clearly stalled. What we saw in summer was exceptional, but sustaining that level of interest requires more than regulatory approval.

– Crypto market analyst

Even more concerning? The outflows. On October 31 alone, nine major Ethereum ETFs recorded nearly $100 million in net redemptions. This wasn’t an isolated incident. Bitcoin ETFs faced similar pressure, losing over $190 million in a single week. The entire sector felt the chill.

BitMine: The Lone Ranger of Institutional Buying

Amid this institutional retreat, one name stands out: BitMine. While others sell or sit on the sidelines, this Ethereum treasury firm has been accumulating aggressively. In the past 30 days alone, they’ve added over 662,000 ETH to their holdings.

That’s not pocket change. At current prices, we’re talking hundreds of millions of dollars. Their total stash now approaches 3.1 million ETH—nearly 3% of the entire circulating supply. Their most recent purchase? A cool 77,000 ETH on October 27, worth roughly $285 million.

• 30-day accumulation: 662,169 ETH
• Total holdings: ~3.1 million ETH
• Percentage of supply: ~2.6%
• Latest buy: 77,055 ETH ($285M)

I’ve always found corporate treasury strategies fascinating. When a company commits this heavily to a single asset, it sends a powerful signal. But it also raises questions. How sustainable is this approach? And what happens when even they pause?

The NAV Dilemma: Walking a Tightrope

Here’s where things get interesting. BitMine’s net asset value sits just above issuance levels. Translation: they can still raise capital through share dilution, but the window is narrowing. Each new ETH purchase requires fresh funding, and investor appetite has limits.

Think of it like a high-stakes balancing act. On one side: the desire to accumulate more Ethereum at attractive prices. On the other: the need to maintain shareholder value. Push too hard, and you risk eroding trust. Pull back, and you miss the dip.

BitMine’s strategy works as long as ETH prices cooperate and shareholders remain patient. But both those variables are increasingly uncertain.

In my experience covering crypto treasuries, this dynamic rarely ends well long-term. The most successful firms diversify or implement clearer exit strategies. Pure accumulation plays tend to hit walls.

Price Action: Breaking Down the Charts

Let’s zoom out and look at what the market is actually doing. Ethereum currently trades around $3,714—well below its 30-day moving average of $3,847. That’s textbook bearish price action.

Since mid-October, we’ve seen a clear pattern of lower highs and lower lows. The $4,000 level, once psychological support, now acts as formidable resistance. Each attempt to reclaim it has been decisively rejected.

Technical Indicators: Oversold but Not Out

The Relative Strength Index tells an interesting story. At 26.45, Ethereum has officially entered oversold territory. For context, readings below 30 typically signal that selling pressure may be exhausted—at least temporarily.

Does this guarantee a bounce? Absolutely not. But it does increase the probability of some relief. I’ve seen similar setups precede sharp 10-15% rebounds, especially when combined with positive catalysts.

1. RSI hits oversold (<30)
2. Price tests major support
3. Volume spikes on downside
4. Short-term bounce follows (60% historical probability)

However, context matters. The RSI has struggled to climb above 50 for weeks, indicating persistent weakness in bullish momentum. Each recovery attempt meets fresh selling. This is what traders call “distribution.”

Support Levels: Where the Real Battle Begins

The $3,700 to $3,680 zone is make-or-break territory. This area has acted as support multiple times since summer. A clean break below would likely trigger stop-loss cascades, potentially driving prices toward $3,500.

Conversely, a strong defense here—especially with increasing volume—could set the stage for a retest of $3,850. That level aligns with the 30-day moving average and previous breakdown points. It’s the first real hurdle for any meaningful recovery.

Perhaps the most intriguing aspect? Market structure. We’re seeing classic consolidation patterns within a broader downtrend. These periods often precede volatility spikes—either direction.

The Fusaka Upgrade: December’s Wild Card

Mark your calendars: December 3, 2025. That’s when Ethereum’s Fusaka upgrade is scheduled to activate. While details remain somewhat guarded, the upgrade promises improvements in scalability and transaction efficiency.

Upgrades have historically been catalysts. Remember The Merge? Prices rallied 80% in the months leading up. But timing matters. If sentiment remains sour, even positive developments can be sold.

Technical upgrades matter, but narrative drives price. Without renewed institutional interest, Fusaka may underperform expectations.

Fair point. Still, upgrades create deadlines. They force action. Smart money often positions ahead of known events, especially when prices are depressed.

Comparative Analysis: Ethereum vs. Bitcoin ETFs

It’s tempting to view Ethereum’s struggles in isolation, but context helps. Bitcoin ETFs faced similar headwinds, with $607 million in outflows recently. The correlation between BTC and ETH remains strong—around 0.85.

This suggests macro factors at play. Rising interest rates? Geopolitical tension? Whatever the cause, capital is rotating out of risk assets, crypto included.

What Happens If BitMine Stops Buying?

Let’s game this out. BitMine has been the primary bid supporting Ethereum at these levels. Remove that, and the floor weakens significantly. We’re talking potential 10-20% downside in short order.

Their buying isn’t infinite. At some point, balance sheet constraints or strategic shifts will force a pause. The question is timing. Are we months away, or weeks?

Institutional accumulation often follows cycles. We’ve seen this with MicroStrategy and Bitcoin. Aggressive buying phases give way to digestion periods. Ethereum may be entering its digestion phase now.

Long-Term Bull Case: Still Intact?

Zoom out further, and the picture brightens. Ethereum remains the backbone of decentralized finance, NFTs, and layer-2 scaling solutions. Daily transaction volume exceeds $10 billion. Developer activity leads the pack.

• DeFi TVL: $120B+
• Daily active addresses: 500K+
• Layer-2 transactions: 10M+/day
• Staking participation: 28% of supply

Short-term price action doesn’t negate these fundamentals. Corrections are healthy. They shake out weak hands and create better entry points. The key is patience.

Risk Management in Volatile Markets

If you’re holding Ethereum—or considering it—risk management is crucial. Here are practical steps I’ve found effective:

1. Set clear stop-loss levels below key support ($3,650)
2. Dollar-cost average on confirmed bounces
3. Monitor ETF flow data weekly
4. Watch BitMine’s on-chain activity
5. Diversify across layer-2 exposure

Never invest more than you can afford to lose. Crypto rewards discipline, not emotion.

The Psychology of Market Corrections

Corrections feel painful, but they’re normal. Ethereum has dropped 50%+ from peaks multiple times in its history. Each time, it recovered stronger. The difference? Time in the market versus timing the market.

Fear is contagious. When prices fall, narratives shift from “to the moon” to “it’s over.” But markets are cyclical. What feels like the end is often just a phase.

The best opportunities come when others are fearful. Ethereum at $3,700 with oversold indicators and an upgrade incoming? That’s the setup patient investors dream about.

Final Thoughts: Consolidation or Capitulation?

Ethereum stands at a crossroads. Institutional demand has cooled, ETF momentum has stalled, and BitMine carries the buying load alone. Technical indicators scream oversold, but sentiment remains fragile.

The next few weeks will be telling. Hold $3,680 support and reclaim $3,850, and we could see a powerful relief rally into Fusaka. Break lower, and $3,200 becomes realistic.

Either way, this isn’t the end of Ethereum—far from it. It’s a reminder that even the strongest assets face cycles. The question isn’t whether Ethereum will recover, but when—and at what price you’ll position yourself.

In crypto, as in life, the greatest rewards often come after the hardest tests. Ethereum is being tested now. How it responds will define the next chapter.