Ethereum price outlook as Bitmine acquires another 71,179 ETH

Ethereum bulls managed to defend the $2,000 support as Bitmine continued its aggressive accumulation of ETH for the fourth consecutive week.

According to recent reports, Tom Lee’s Bitmine has purchased another 71,179 Ethereum over the past week. The investment firm has been on a buying spree over the past four consecutive weeks, bringing its total ETH holdings to over 4.73 million, which equates to nearly 3.92% of Ethereum’s total circulating supply.

Besides the accumulation, Bitmine also revealed the launch of MAVAN, a dedicated platform that supports institutional staking for large-scale investors. Notably, the firm has already deposited a part of its ETH stash within the system. 

It should be noted that Bitmine has staked over 3.14 million ETH, which equals over $6.3 billion at current prices or nearly 66% of its total holdings, giving it an annualized staking revenue that currently stands at $177 million.

Should Bitmine stake its entire treasury, the projected annual yield could climb to $266 million annually.

The large-scale purchases made by the leading Ethereum treasury company have acted as a significant price floor amidst the broader geopolitical and macroeconomic uncertainty, as it continues its aggressive accumulation strategy with the aim of reaching at least 6 million ETH or 5% of the total circulating supply.

Ethereum (ETH) price rose over 4%, reclaiming the $2,000 psychological support after Bitmine’s latest purchase. It has since consolidated between the $2,000 to $2,100 range before settling at $2,053 at press time.

Ethereum price appears to be forming a double bottom pattern on the daily chart — March 31 | Source: crypto.news

On the daily chart, Ethereum price appears to be forming a large double bottom pattern, one of the most reliable bullish reversal patterns in technical analysis. The bottom of the structure lies at $1,800, while the neckline of the formation sits at $2,400.

Despite the bullish structure, momentum indicators like the MACD and RSI suggest some caution for traders at least in the short term. Notably, the MACD lines have pointed downwards while the RSI was lying a little under the neutral threshold.

For now, Ethereum price could likely see some more sideways movement or minor downward potential toward the bottom of the pattern at $1,800 before bouncing back hard to $2,400, the neckline of the pattern. If ETH manages to break out of that resistance, it could go all the way up to $3,000.