Ethereum (ETH) is showing signs of a potential rebound after a recent market downturn that saw it lose ground around the $4,450-$4,500 level. The cryptocurrency is currently trying to hold a crucial support level, and analysts are suggesting a bounce could be on the horizon as companies with crypto treasuries continue to invest in ETH.
Ethereum Attempts Recovery Amid $4,100 Test
Earlier this week, Ethereum’s price experienced a sharp drop of approximately 7% during a significant liquidation event. Data from CoinGlass indicated over $1.7 billion in leveraged positions were liquidated across the crypto market, with ETH leading the losses at nearly $500 million, followed by Bitcoin at $284 million. This pushed Ethereum's price down to the $4,100 support level for the first time since August, reaching a one-month low of $4,077.
Daan Crypto Trades pointed out that this event represented the largest nominal Ethereum liquidation since 2021, when the cryptocurrency's price plummeted around 45% in a single day. However, some market observers noted that the price decline was relatively moderate compared to previous liquidations of similar magnitude.
As Ethereum approached the $4,100 support, some analysts believe it may be preparing for a rebound. Merlijn The Trader, for example, stated that ETH is "following the blueprint" towards a five-digit target.
According to the analyst, Ethereum rallied to its previous all-time high (ATH) of $4,800 after breaking out of a multi-year bullish pattern. Following a breakout from an Adam and Eve formation in 2021, the cryptocurrency retested the level as support and consolidated around that area for three months before beginning its next upward move.
Currently, Ethereum appears to be repeating a similar pattern with a multi-year descending triangle formation. The price broke out of this formation last month and is now retesting it as support. Based on this setup, ETH could potentially see a breakout towards the $10,000 level, similar to what occurred in 2021.
However, Ted Pillows cautioned that Ethereum must hold the $4,100 area as support to facilitate a short-term bounce. He warned that if this level is breached, Ethereum could fall towards the $3,700-$3,800 range.
BitMine's Substantial ETH Holdings
Despite recent market volatility, corporations continue to incorporate Ethereum into their Digital Asset Treasury (DAT) strategies. BitMine, the second-largest crypto treasury, announced that it has increased its ETH holdings to nearly 2.5 million tokens, as part of its broader objective to hold 5% of Ethereum’s total supply.
BitMine now holds over 2% of the Ethereum supply with 2,416,054 ETH, making it the largest ETH Treasury globally. The company's total assets now amount to $11.4 billion, including the ETH tokens, 192 Bitcoin (BTC), a $175 million stake in Eightco Holdings for its “Moonshot” initiative, and $345 million in unencumbered cash.
The company is also the 24th most actively traded stock in the U.S., with an average daily volume of $3.5 billion, based on a 5-day average from Fundstrat.
BitMine’s chairman, Thomas “Tom” Lee, has stated the company’s firm belief that “Ethereum is one of the biggest macro trades over the next 10-15 years,” emphasizing that “Wall Street and AI moving onto the blockchain should lead to a greater transformation of today's financial system, with the majority of this activity taking place on Ethereum.”
Currently, ETH is trading at $4,145, reflecting an 8% decrease over the past week.
