Ethereum remains trapped between $2,700 support and $3,200 resistance as bears fail to break down. Meanwhile, Tom Lee's Bitmine purchases another 13,412 ETH worth $40.61 million, signaling strong institutional confidence despite sideways price action and fading momentum.
Ethereum remains locked in a tight range, testing bears at $2,700 while institutional players double down on accumulation. The second-largest cryptocurrency faces a critical juncture as momentum wanes but structural support holds firm.
Price action has shown remarkable resilience despite sideways movement. According to MerlijnTrader on X, Ethereum tested $2,700 recently, with bears failing to push through. The key resistance at $3,200 continues to cap upside movement, creating a pressure cooker scenario.
Market watchers note the compressed state signals an imminent volatility burst. The current consolidation phase mirrors previous patterns that preceded major breakouts. Ethereum holders remain patient as the asset builds energy for its next directional move.
Fundstrat Chief's Bitmine Adds 13,412 ETH in Latest Accumulation
Tom Lee's Bitmine executed another significant Ethereum purchase valued at $40.61 million. According to lookonchain on X, Fundstrat's affiliated entity acquired 13,412 ETH tokens in this latest transaction. The move reinforces institutional confidence despite market uncertainty.
Bitmine has emerged as a major Ethereum treasury holder under Lee's leadership. The company's aggressive accumulation strategy has positioned it as the second-largest digital asset treasury company globally. Holdings now represent over 3.2% of total ETH supply.
Lee projects Ethereum could reach $12,000 if it returns to its eight-year average ratio against Bitcoin. His thesis centers on Ethereum becoming the foundation for worldwide financial settlement. The majority of stablecoins already operate on the Ethereum network, strengthening this narrative.
The Fundstrat chief views stablecoins as Ethereum's breakthrough moment, comparable to ChatGPT's impact on artificial intelligence. This institutional backing contrasts sharply with retail investor caution. Market dynamics suggest sophisticated players anticipate substantial upside from current levels.
Current trading sees Ethereum hovering near $3,025, down approximately 4% from week-earlier prices. The asset touched yearly highs above $4,015 in early December before retreating. Monthly performance shows Ethereum down 6.63% for December after November's 35.39% surge.
Network fundamentals remain robust with funds locked increasing from 25 million to 31 million ETH over the past year. Monthly trading activity jumped from approximately $67 billion to $86 billion during the same period. These metrics indicate growing utilization despite price stagnation.
The compression phase between $2,700 support and $3,200 resistance defines the current technical setup. Traders anticipate a decisive break in either direction will trigger significant volatility. Historical patterns suggest longer consolidation periods precede more explosive moves.
Institutional accumulation continues while retail sentiment remains cautious. Lee's Bitmine added over 138,000 ETH in a single week earlier this month, demonstrating conviction at current valuations. This divergence between institutional buying and price action creates an intriguing market dynamic.
Key Takeaways:
- Ethereum compressed between $2,700 support and $3,200 resistance with bears failing to follow through on breakdown attempts
- Bitmine purchased 13,412 ETH worth $40.61 million as Tom Lee's firm continues aggressive institutional accumulation strategy
- Network fundamentals strengthen with locked funds rising to 31 million ETH and monthly trading volume reaching $86 billion
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Ethereum Stuck Below $3,200: $40M Bitmine Buy
Ethereum tests $2,700 support as Bitmine adds $40.61M in ETH. Price compressed below $3,200 resistance. Volatility surge imminent as momentum fades.