Over 3.5 million staked by Bitmine (NYSE:) so far. This is 72% of its total ETH holdings. Meanwhile, the price of ETH is seeing a consolidation.
Recently, Lookonchain pointed out that Bitmine has staked over 3.5M ETH, which is 72.1% of its total ETH holdings. In other words, Bitmine has moved away from just holding ETH to actually seeing yields from it. This is even more impressive considering the price of ETH has struggled to gain any noteworthy bullish momentum in the past few days.
Bitmine’s Staking and Growing Share of the ETH Supply
According to a recent X post by Lookonchain, Bitmine has now staked approximately 3.5M ETH valued at $8.35B. This is 72.1% of the company’s total ETH holdings which shows that they are looking at ETH as a good long-term asset. Staking also has other perks for Bitmine as it lets them earn yields even when the market is stagnant
They currently own 4.1% of the circulating ETH supply. Publicly, Bitmine has said they are aiming toward a 5% goal. If reached, it would make them one of the most dominant players in the Ethereum network. However, it also brings up different factors to consider. Some positive and some negative.
For example, it shows that a big institutional investor like Bitmine is showing faith in the long-term potential of a crypto like Ethereum. On the other hand, it also shows that they have supply control over the second-largest cryptocurrency in terms of market cap.
The Price of Ethereum Is Consolidating
Ethereum is going through a consolidation phase while Bitmine’s staking activity is picking up steam. CoinMarketCap data points to the price of ETH gravitating between $2,330 and $2,310 on the one-week chart. This is seen as a stabilization since Ethereum managed to rise from around $2,150 in the past 30 days.
It is worth noting that ETH needs to break past the resistance level of $2,400 for it to reach higher levels. The price of ETH could go as high as $2,900 if it manages to do that. At the same time, its support levels sit at $2,255 and $2,300. A drop below them may lead to a fall to $2,150 for ETH.
The Ethereum Technical Indicators Turn Bearish
The technical analysis for Ethereum paints a bearish picture at the moment. Investing.com data shows that its MACD (12,26) indicator has a value of -12.4 which is in the sell zone. In other words, the 12-day EMA is now below the 26-day EMA, which indicates that downward momentum is rising.
Its 14-day RSI indicator shows a value of 39, which points to a strong downward momentum too. Bears have also been in control in the past 13 days as the bull/bear power indicator has a value of -9. This suggests they have been pushing the price of ETH below its 13-day average. Despite these negative factors, institutional players like Bitmine have chosen to ramp up their staking activity.
A Long-Term Strategy in Action
Bitmine’s actions show a clear strategic shift from accumulation to staking. This strategy points to them looking at Ethereum as a productive financial instrument instead of just a speculative one. It also suggests confidence in Ethereum’s long-term stability. Keep in mind that staked assets are locked for extended periods, which shows that Bitmine is not focused on short-term trading.
If this trend keeps going and proves beneficial for Bitmine, staking could become a key aspect of institutional crypto strategies in the future.