BMNR stock jumps as Ethereum rebounds, BitMine nears inflection point

BitMine stock jumped to $20.85, its highest level since May 15, up sharply from the year-to-date low of $12.54. This rebound happened as Ethereum price jumped above the crucial resistance level of $2,000 amid a crypto resurgence. 

Ethereum price is rebounding as Crypto Fear and Greed Index jumps

BitMine stock jumped as investors rotated to Ethereum and other coins. ETH rose to $2,330, its highest level since May 11. It has jumped by 50% from its lowest level this year.

This rebound continued as investors embraced a risk-on sentiment. The Crypto Fear and Greed Index has moved from the extreme fear zone of 17 to the current 52. In most cases, this growth normally leads to more demand for cryptocurrencies. 

Ethereum is also rising as demand for its quoted ETFs continued adding assets. Data shows that spot Ethereum ETF inflows jumped by $189 million on Wednesday, up sharply from $71 million on Tuesday and $30 million a day earlier. 

These funds have added $534 million this month up sharply from $365 million a month earlier. They have had a cumulative inflows of over $11.75 billion, bringing the total net assets to $12 billion. These are all bullish catalysts for Ethereum and BitMine, the biggest holder of the coin. 

BitMine is nearing an inflection point

Tom Lee’s BitMine Immersion is nearing an inflection point as it nears the 5% Ethereum accumulation target. If Ethereum rebounds and hits its all-time high, BitMine will have executed one of the best dollar cost averaging (DCA) strategy over time. That’s because it has been buying Ethereum as its price has plunged in the past few months. 

The company has bought 37,696 coins in the last 30 days, bringing the total coins to 5.815 million coins. This means that it needs to buy 185k coins to hit its 5% target.

Finishing the accumulation will bring it to an inflection point where it will change it from a dilutive company into a free cash flow machine. In this, it will now start focusing solely on Ethereum staking, which will bring in about 2.9% annual returns.

If the company makes 180,000 coins a year, its annual revenue will be over $423 million a year if the price remains in this range. The company will now use these funds to pay dividends and implement share buybacks. Also, it will use these funds to make strategic investments.

Another potential catalyst for the company is that it holds a stake in Eightco, which gives it an indirect stake in OpenAI. 

BMNR stock price technical analysis

BMNR stock chart | Source: TradingView

The daily chart shows that the BitMine stock price has been in an uptrend in the past few months. It has jumped from a low of $12.54 to the current $20.24. 

The stock has formed an ascending channel and is now nearing the upper side. Also, the stock has jumped above the crucial resistance level of $17.5, its lowest swing in February. It also moved above the 50-day moving average.

Therefore, the stock will likely continue rising as bulls target the key resistance level of $25. A drop below the lower side of the channel will invalidate the bullish forecast.