Tom Lee’s BitMine Buys $50M ETH As Santiment Says Ethereum Could Reclaim $3,200 Soon

Tom Lee’s Ethereum treasury firm BitMine has purchased $50.1 million worth of ETH as Santiment says the altcoin could test the $3,300 resistance level soon.

That’s as the largest altcoin by market cap slipped over 1% in the past 24 hours to trade at $2,993.61 as of 1:53 a.m. EST.

ETH price (Source: CoinMarketCap)

BitMine Buys The Dip

The 24-hour drop in the ETH price extended the altcoin’s negative weekly streak to over 22%, with BitMine, the largest corporate ETH holder, buying the dip.

On-chain analytics firm Lookonchain said that a new wallet that is “likely linked” to BitMine had received the 16,693 ETH tokens from FalconX. 

Santiment Says ETH May Reclaim $3,200 Soon

Several crypto Twitter users commented that the BitMine ETH purchase could be a strategic positioning by the treasury company. This aligns with a recent analysis by Santiment. 

In a recent report, Santiment predicted that ETH may reclaim $3,200 soon as subdued stablecoin yields suggest the crypto market has yet to reach overheated conditions. 

“Currently, yields are low, around 4%. This indicates the market has not reached a major top and could still push higher,” the firm said. This is the primary reason Santiment analysts believe ETH may still try to reach the $3,200 resistance level,” Santiment said. 

ETH ETFs Continue Their Inflows Streak

Meanwhile, spot Ethereum ETFs (exchange-traded funds) find themselves riding a multi-day inflows streak.

Data from Farside Investors shows that the ETH investment products have seen five consecutive days of net daily inflows. This followed an eight-day outflows streak, which saw hundreds of millions of dollars leave the funds. 

In the latest trading session, there were only two funds that recorded inflows. BlackRock’s ETHA, which is the largest spot ETH ETF by cumulative inflows, cemented its dominance with $68.3 million net inflows. The only other fund to record inflows was Grayscale’s ETHE, which saw $8.3 million inflows. 

Technicals Start To Turn Bullish For ETH

Technical indicators for ETH also point to an upcoming move for the Ethereum price.

Daily chart for WETH/USD (Source: GeckoTerminal) 

ETH is currently attempting to flip the resistance level at $3,070 into support. A break above this level would be significant, because the barrier is also confluent with the 9 and 20 Exponential Moving Averages (EMAs) on the daily chart. As such, overcoming the resistance may signal a bullish shift in momentum that might see ETH rise over 15% to as high as $3,590.

Meanwhile, the Moving Averages Convergence Divergence (MACD) shows bulls have a slight upper hand, while the Relative Strength Index (RSI) shows ETH’s upside potential is greater than its downside potential.

The bullish thesis could be invalidated if ETH is rejected by the $3,070 mark. This might result in a correction to $2,705.