Tom Lee, the chairman of Bitmine Immersion Technologies (), has said that public companies now run Ethereum. Lee explained that public companies have stepped in to fill the gap as the Ethereum Foundation cut its network holdings to 100,000 .
With these treasuries stepping up, Lee believes they have quietly taken stewardship over from the Ethereum Foundation. Lee also has a very bold ETH prediction. The Bitmine chair believes 1 ETH could get valued at $250,000, driven by tokenization and AI.
Public Firms Now Run Ethereum
During a keynote speech at the Proof of Talk conference in Paris, Tom Lee said corporate treasuries have quietly taken over stewardship of the Ethereum (ETH) network. His comment comes on the backdrop of criticism about how the Ethereum Foundation is being run.
Lee explained that the Ethereum Foundation has been selling, cutting its network holdings to 100,000 ETH, or 0.1% of Ether’s supply. On the flip side, public companies like Lee’s Bitmine have been filling in the gap.
Bitmine is currently on a mission to purchase 5% of ETH’s total supply. The company already holds 4.47% of Ethereum’s circulating supply. And together with Sharplink (), they hold 7% of ETH’s circulating supply. Since they now control more validators, public companies now run the network.
Lee Predicts $250K ETH Price
Tom Lee explains that his company has been buying ETH ahead of an upcoming wave of machine activity. As robots move to handle everything, he argues that blockchain will handle authentication, identity, and payment.
On this backdrop, Lee has said that the Ethereum price could reach $250,000. While Lee didn’t give a timeline for his prediction, he notes that it will be driven by tokenization and AI. At the Ethereum price of $1,880, this prediction seems lofty for investors.
ETH Drops Under $1,900
While institutional interest in Ethereum (ETH) has increased, ETH price has not responded accordingly. On the backdrop of the crypto market decline in response to global tension, the ETH price has fallen under the $1,900 level for the first time in months.
Ethereum price is down by 5.1% over the last 24 hours in terms of value. On the monthly chart, ETH price has dropped by more than 19.7%. As a result of this steep decline, Ethereum now trades at $1,874, in terms of value.
Technical Indicators Hint at More Declines
ETH price trades at $1,874 below its full moving-average stack, according to Investing.com data. The Ethereum 50, 100, and 200-day SMAs sit at approximately $2,091, $2,230, and $2,486, all now representing resistance levels.
ETH Momentum indicators reflect strong selling pressure, which could lead to more Ethereum price declines. The 14-day RSI sits at 24.627, a level associated with oversold conditions, while the MACD(12,26) reads -86.69, indicating a strong presence of sellers in the market.
Before any move upwards, ETH will need to stabilize above the $1,900 support level. If this happens, bulls can now gain momentum to attack the $2,000 resistance level. However, if there is no bullish action soon, ETH price could fall further to $1,800.