Ethereum Price Outlook: BitMine’s $84M Buy Fails to Break $4,502 Resistance

Currently trading around $4,182, Ethereum (ETH) is facing renewed pressure below the $4,500 mark despite aggressive institutional accumulation.

BitMine, led by Tom Lee, made headlines this week after purchasing approximately $84 million worth of ether within 24 hours, lifting its total holdings to more than 2.15 million ETH. The move underscores growing institutional conviction, even as short-term market dynamics remain unfavorable.

BitMine’s Institutional Bet on Ethereum (ETH)

BitMine executed the purchase in five tranches, including a 4,428 ETH acquisition via Galaxy Digital’s OTC desk, followed by four additional transfers totaling 14,302 ETH. This sizable investment positions BitMine as one of the largest institutional holders of Ethereum, highlighting the increasing comfort of major players in treating ETH as a strategic asset.

While the company’s growing wallet strengthens Ethereum’s long-term adoption narrative, the market reaction has been muted. Ethereum briefly spiked above $4,600 following the Federal Reserve’s recent 25-basis-point rate cut but failed to sustain momentum.

Analysts attribute this to profit-taking by larger holders and fading risk appetite, with ETH retreating toward the $4,300 zone.

Key Technical Levels to Watch

On the technical front, Ethereum’s price action reflects weakness. The cryptocurrency broke down from a month-long contracting triangle, slicing below both the 50-SMA ($4,502) and 200-SMA ($4,396). These levels, once strong support zones, have now flipped into overhead resistance.

The Relative Strength Index (RSI) collapsed to around 18, signaling oversold conditions. However, oversold does not necessarily mean an immediate rebound. Traders are closely watching the $4,395–$4,502 range, where a bearish reversal candle could confirm further downside. Immediate support levels are seen at $4,242, $4,159, and $4,065.

Only a decisive reclaim above $4,502, validated by strong bullish patterns such as an engulfing candle or sustained closes, would reopen the path to $4,588 and $4,699. Until then, the market remains in a “sell the rally” mode.

Outlook: Long-Term Bullish, Short-Term Bearish

Despite current weakness, Ethereum’s long-term outlook remains constructive due to steady institutional accumulation. BitMine’s $84M buy demonstrates confidence that ETH will play a central role in digital asset adoption, even as traders face choppy near-term conditions.

Ethereum may continue to struggle below resistance in the coming sessions. However, with deep-pocketed institutions like BitMine steadily increasing exposure, long-term holders may view current dips as an opportunity rather than a threat.