BitMine ramps Ethereum to 3.6% supply while price tests support

Ethereum slid ~5% toward $1.9k as whale selling and ETF outflows hit sentiment, despite bullish RSI divergence hinting at a potential reversal.

Ethereum (ETH) traded near a critical support level as large holders sold significant amounts of the cryptocurrency, creating downward pressure despite technical indicators suggesting a potential reversal, according to market data and on-chain analytics.

The cryptocurrency displayed bullish divergence on 12-hour charts, with the Relative Strength Index making a higher low while the price established a lower low over the prior month. This technical pattern typically precedes price reversals in traditional technical analysis.

However, substantial selling activity by large holders has complicated the technical outlook. A major wallet address sold a substantial amount of Ethereum in a concentrated period, according to blockchain data. Another dormant whale address transferred coins to an exchange after remaining inactive for years, a movement typically associated with selling intentions. Ethereum co-founder Vitalik Buterin also sold a notable amount over recent days, data showed.

BitMine Immersion Technologies moved counter to the broader trend, substantially increasing its Ethereum holdings to represent a notable share of circulating supply, according to company disclosures. The firm maintains a large staked position generating annualized yield and completed a major purchase last week. The company has publicly stated an acquisition target that would capture a meaningful share of total supply.

Traditional financial institutions showed opposite behavior. Ethereum exchange-traded funds posted consecutive weeks of net outflows, indicating capital exiting these regulated investment products, according to fund flow data.

On-chain metrics presented mixed signals. New wallets received materially higher-than-normal inflows, whale inflows spiked well above average levels, and top profit-and-loss wallets added sizable amounts, blockchain analytics firms reported. The combination of ETF outflows and major whale selling has kept downward pressure on the price in the near term.

The cryptocurrency’s price trajectory depends on whether current support levels hold, analysts noted. A daily close below the key support level would invalidate the bullish divergence pattern and expose lower support zones. Technical analysts identified a downside scenario involving continued large holder selling, ongoing ETF outflows, and absent buying interest until a lower level triggers capitulation selling.

The alternative scenario requires the support level to hold, followed by a reclaim of recent consolidation highs, which would signal a reversal pattern and open movement toward the next technical resistance level, according to chart analysis.