BitMine's $525M **ETH** Stake Sparks Supply Shock

Tom Lee's BitMine loads 154,304 ETH while new wallet creation hits all-time high, setting up potential supply squeeze as $3,400 resistance weakens.

Ethereum faces mounting pressure as institutional accumulation collides with tightening supply dynamics. BitMine's latest staking move and surging wallet creation signal shifting market structure.

Tom Lee's BitMine added 154,304 ETH to its staking portfolio, bringing total holdings to 1,685,088 ETH worth approximately $5.7 billion at current prices. The move comes as Ethereum attempts to reclaim critical resistance levels following weeks of consolidation.

According to CryptosR_Us on X, new ETH wallets hit an all-time high with 393,600 created in a single day as institutional staking surges and circulating supply tightens.

The dual forces of increased staking and wallet creation create supply-side pressure. With more ETH locked in staking contracts and on-chain activity accelerating, available tokens for trading diminish. This dynamic historically precedes volatile price movements.

ETH Technical Levels Point to Critical Decision

Ethereum tested $3,400 before consolidating around $3,270. Traders now watch for structural shifts as price action compresses between key levels.

Lennaert Snyder tweeted on X that ETH tapped $3,400 yesterday and continues pushing, with three scenarios emerging: liquidity grab below $3,270, tests at the $3,400 weekly high, or continuation longs if ETH prints an H4 gain above $3,450 targeting $3,600.

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The $3,400 level represents a pivotal threshold. A decisive reclaim could trigger rallies across altcoin markets. Failure risks retest of support zones near $3,200, where buyers previously stepped in aggressively.

Ted Pillows noted on X that ETH still struggles to reclaim the $3,400 level, stating if this happens Ethereum and alts will see a good rally, but if ETH fails to reclaim, a retest of the $3,200 support zone could occur.

On-chain metrics support the bullish case. Staking activity continues climbing while exchange reserves decline. The combination suggests holders prefer locking tokens long-term rather than selling into current prices.

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The zero unstaking queue indicates validators aren't rushing to exit positions. This confidence from long-term holders often precedes sustained upward moves, particularly when paired with institutional accumulation.

Price action over the next sessions determines whether Ethereum breaks resistance or consolidates further. The convergence of technical levels, institutional buying, and supply constraints creates conditions for significant volatility in either direction.

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3 KEY TAKEAWAYS

1. BitMine stakes 154,304 ETH bringing total to 1.68M ETH while new wallets hit 393,600 in single day

2. Ethereum tests $3,400 resistance with three scenarios emerging for traders watching key levels

3. Zero unstaking queue and declining exchange reserves signal long-term holder confidence amid rally

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