Ethereum price breaks $1,900: is BitMine’s buying slowdown a warning?

Ethereum ETH is the second-best performer among the top 10 cryptocurrencies by market cap, up by nearly 3% in the last 24 hours.

The positive performance has seen ETH cross the $1,900 level despite institutional treasury company BitMine Immersion Technologies (BMNR) easing its pace of ETH accumulation while continuing an aggressive share buyback program. 

Meanwhile, US spot Ethereum exchange-traded funds (ETFs) continue to attract inflows following last week’s excellent performance. 

BitMine slows Ethereum accumulation as it nears ownership target

BitMine acquired 7,430 ETH over the past week, marking its smallest weekly purchase since adopting its Ethereum-focused treasury strategy.

The latest acquisition increased the company's holdings to 5.777 million ETH, valued at approximately $10.86 billion at the time of writing. 

BitMine now controls roughly 4.8% of Ethereum's circulating supply, leaving it just 0.2 percentage points away from its stated goal of owning 5% of all ETH in circulation.

The slower pace of buying follows the company's earlier guidance that ETH purchases would moderate as it approached its long-term accumulation target.

Instead of deploying as much capital into additional Ethereum purchases, BitMine directed funds toward repurchasing its own shares.

Last week, the Las Vegas-based company spent approximately $85.88 million to buy back around 5.5 million common shares at an average price of $15.61.

The repurchases were completed under the firm's previously authorized $4 billion share buyback program.

"We view the purchase of our common shares as accretive to shareholder value," BitMine Chairman Thomas Lee said in a statement on Monday.

BitMine also reaffirmed its commitment to staking as a key component of its treasury strategy.

The company has staked 4.917 million ETH, representing about 85% of its Ethereum holdings, through its institutional staking platform, Made in America Validator Network (MAVAN).

According to BitMine, the staked assets are expected to generate approximately $247 million in annualized staking revenue.

Beyond Ethereum, the company disclosed holdings of 207 Bitcoin (BTC), a $180 million investment in Beast Industries, a $58 million stake in the Worldcoin (WLD) treasury, an investment in Eightco Holdings (ORBS), and $385 million in cash and marketable securities.

Institutional demand also continued to improve through US spot Ethereum ETFs. Data from CoinGlass showed that the funds attracted $38 million on Monday. 

This comes after they recorded a net inflow of $105.4 million last week.

The ETFs extended their recovery to two consecutive weeks of positive flows after enduring eight straight weeks of net outflows.

Most of last week's inflows came from BlackRock's iShares Ethereum Trust (ETHA), which attracted $135.31 million.

Several other Ethereum ETFs recorded little or no activity, while some continued to experience modest outflows.

Although the recent recovery is encouraging, overall ETF demand remains subdued compared to the substantial redemptions seen over the past six months, indicating institutional sentiment is improving only gradually.

Ethereum price outlook: ETH tops the $1,909 resistance

The ETH/USD 4-hour chart is bullish and efficient thanks to Ethereum’s ongoing rally. 

From a technical perspective, ETH continues to maintain a constructive short-term outlook after reclaiming key moving averages.

The cryptocurrency is trading above both the 20-day Exponential Moving Average (EMA) at $1,810 and the 50-day EMA at $1,818, suggesting buyers are regaining momentum. 

ETH is also approaching the 100-day EMA near $1,940, a significant resistance level that was rejected during last week's rally.

Momentum indicators also favor the bulls. The Relative Strength Index (RSI) sits around 70, indicating healthy buying momentum. The MACD lines are also within positive territory. 

ETH has surpassed the $1,909 resistance level and could extend its rally towards the 100-day EMA at $1,940.

A decisive close above this level could pave the way for gains toward $2,018 and $2,107, with further upside targets at $2,211 and $2,388.

On the downside, initial support lies near $1,854, followed by the clustered 20-day and 50-day EMAs around $1,810. 

If selling pressure intensifies, Ethereum could retest support near $1,741, while a break below that level would expose deeper support zones around $1,524 and $1,404.