Ethereum Fear Hits Extremes as Bitmine Nears 5% ETH Supply Target

TLDR:

• Bitmine acquired another 75,000 ETH, lifting known holdings to roughly 4.59% of supply.
• Santiment data shows Ethereum’s positive-to-negative sentiment ratio near yearly lows.
• ETH traded at $1,627.67 after falling 3.62% daily and nearly 12% over seven days.
• Kraken and FalconX reportedly facilitated Bitmine’s latest $123 million ETH purchases.

Ethereum faced another week of selling pressure as social sentiment fell to one of its weakest levels this year. At the same time, Tom Lee-backed Bitmine continued adding to its Ether position through large acquisitions. 

The contrasting developments emerged as ETH extended its recent decline and traders debated the asset’s near-term direction. New on-chain data now shows one entity approaching ownership of 5% of Ethereum’s circulating supply.

Ethereum Sentiment Falls as ETH Price Extends Decline

Ethereum traded at $1,627.67 on Tuesday, according to CoinGecko data. The asset fell 3.62% over the past 24 hours and 11.97% during the last week.

The price weakness arrived alongside a sharp deterioration in social sentiment. Data shared by Santiment showed Ethereum’s positive-to-negative commentary ratio dropping toward one of its lowest readings of the year.

According to Santiment, bearish narratives have dominated discussions across social platforms in recent weeks. Traders have reacted to Ethereum’s prolonged underperformance against Bitcoin and several other large-cap digital assets.

The data provider also pointed to ongoing debate surrounding the Ethereum Foundation. Discussions about leadership, priorities, and comments from Ethereum co-founder Vitalik Buterin added to the negative tone.

Santiment noted that similar periods of extreme pessimism have historically appeared when selling pressure became heavily concentrated. The firm highlighted that crowd expectations often move in the opposite direction of future price action.

Bitmine Adds 75,000 ETH Through Kraken and FalconX

While sentiment weakened, Bitmine continued expanding its Ethereum position. On-chain tracking platform Spot On Chain reported that the company accumulated another 75,000 ETH worth approximately $123 million over the past eight hours.

The purchases reportedly flowed through Kraken and FalconX. Spot On Chain’s Hupzy account stated that the transactions pushed Bitmine’s known Ethereum holdings to roughly 4.59% of total supply.

The accumulation campaign places the company close to its stated objective of reaching 5% of Ethereum’s supply. The latest purchases represent one of the largest ongoing Ether acquisition efforts currently visible on-chain.

Spot On Chain characterized the buying activity as systematic accumulation rather than short-term trading. The firm also noted that execution through major liquidity venues can reduce immediate market impact compared with large open-market purchases.

The growing position comes as Ethereum navigates a difficult market environment. Even with sentiment near extreme lows and prices under pressure, on-chain records continue to show substantial institutional-scale demand for the asset.

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