After losing the $4,450-$4,500 area during the recent market downturn, Ethereum (ETH) is attempting to hold a crucial level as support. Some analysts suggest that the leading altcoin is poised to bounce soon as crypto treasury companies continue to bet on the cryptocurrency.
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Ethereum Eyes Rebound Amid $4,100 Retest
On Monday, Ethereum’s price dropped around 7% during the largest liquidation event of the year so far. Notably, the crypto market saw more than $1.7 billion in leveraged positions liquidated over the past 24 hours, according to CoinGlass data.
ETH led the losses with nearly $500 million in liquidations, followed by Bitcoin’s $284 million. This dragged the King of Altcoin’s price to the crucial $4,100 support for the first time since August, hitting a one-month low of $4,077.
Daan Crypto Trades highlighted that today’s event was the largest nominal Ethereum liquidation since 2021, when the cryptocurrency’s price dropped around 45% in a single day. However, various market watchers noted that the price decline was relatively tame compared to previous liquidations of this scale.
As the second-largest cryptocurrency dropped to the $4,100 support, some analysts suggested that Ethereum is gearing up for a rebound. Merlijn The Trader affirmed that ETH is “following the blueprint” to a five-digit target.
Per the trader, the cryptocurrency rallied to its previous all-time high (ATH) of $4,800 after breaking out of a multi-year bullish pattern. Following its breakout from an Adam and Eve formation in 2021, the leading altcoin retested the level as support and consolidated around this area for three months before the next leg up.
This time, Ethereum displays a new textbook setup with a multi-year descending triangle formation, which was broken out of last month and is currently being retested as support. According to the market watcher, ETH could see a 2021-like breakout toward the $10,000 barrier.
Nonetheless, Ted Pillows asserted that the altcoin must hold the $4,100 area as support for a short-term bounce. “If this level is lost, Ethereum will drop towards the $3,700-$3,800 level,” the analyst warned.
BitMine Holds 2% Of ETH Supply
Despite the market downturn, corporations continue to bet on the second-largest cryptocurrency for their Digital Asset Treasury (DAT) strategies. BitMine, the second-largest crypto treasury, revealed that it has increased its ETH holdings to nearly 2.5 million tokens over the past week, as part of its goal to hold 5% of Ethereum’s total supply.
BitMine now owns over 2% of the supply with 2,416,054 ETH, solidifying its position as the largest ETH Treasury in the world. According to the Monday announcement, the company now holds $11.4 billion in assets, including the 2.4 million ETH tokens, 192 Bitcoin (BTC), $175 million stake in Eightco Holdings for its “Moonshot” initiative, and unencumbered cash of $345 million.
Additionally, the company is the 24th most traded stock in the US, with an average daily volume of $3.5 billion, according to 5-day average data from Fundstrat.
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BitMine’s chairman, Thomas “Tom” Lee, stated that the company continues “to believe Ethereum is one of the biggest macro trades over the next 10-15 years,” adding that “Wall Street and AI moving onto the blockchain should lead to a greater transformation of today’s financial system. And the majority of this is taking place on Ethereum.”
As of this writing, ETH is trading at $4,145, an 8% decline in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
