Ethereum is facing fresh near-term demand questions as BitMine Immersion moves closer to a pre-set limit on its weekly spot buying. The company said it plans to pause additional Ethereum purchases once it holds an amount equal to 5% of circulating supply, while the token’s price has been pressured by continued ETF outflows and leveraged liquidations.
Key takeaways
- Price move: Ethereum has declined about 5% over the past week and recently traded below the $2,600 level, with key technical support around $2,548 in focus.
- Catalyst: BitMine said it is roughly one step away from reaching its 5% of circulating supply accumulation target, implying a potential end to a recurring buy program.
- ETF pressure: US spot Ethereum ETFs recorded about $161 million in net outflows, extending negative flows to a seventh straight session.
- Leverage unwinds: CoinGlass data showed nearly $102 million in Ethereum futures liquidations over 24 hours, with long positions taking the larger share of losses.
- Implication: Investors will watch whether other demand—such as ETF investors and corporate/market participants—can offset BitMine’s reduced buying.
BitMine nears its 5% Ethereum accumulation threshold
BitMine Immersion’s chairman, Thomas Lee, said at TOKEN2049 in Singapore that the company is on track to complete its accumulation strategy after building holdings faster than originally expected. He said BitMine would stop buying once it reaches a threshold equal to 5% of Ethereum’s circulating supply, which Lee framed as the end of its planned weekly purchases.
According to BitMine’s most recent disclosure, the company conducted a weekly purchase of 15,112 ETH, lifting its total holdings to about 6.016 million ETH—roughly 4.9% of circulating supply. Lee indicated that BitMine is likely to need approximately 100,000 ETH to complete the strategy at that target level.
At the current weekly buying pace cited by the company, acquiring an additional 100,000 ETH would take an estimated seven weeks. Lee also said BitMine reached its current position considerably faster than its initial plan, with accumulation occurring over a little more than a year rather than the five years originally projected.
While the plan points to a reduction in recurring buy demand, Lee’s comments did not indicate BitMine intends to sell its existing ETH reserves. BitMine also said it has staked about 5.067 million ETH through its MAVAN validator network and other staking partners, meaning staking remains a major component of its treasury operations.
What investors are weighing: demand versus ETF outflows
The announcement lands as market participants track whether institutional flows are still supportive. According to CoinGlass data referenced in the report, US spot Ethereum ETFs recorded roughly $161 million in net outflows on Wednesday. The withdrawals marked a seventh consecutive session of negative flows, reinforcing the view that ETF investors have been reducing exposure.
At the same time, the report cited activity in derivatives markets. CoinGlass data showed nearly $102 million in Ethereum futures liquidations over the preceding 24 hours. Long positions accounted for $90.74 million of liquidations versus $11.7 million in short liquidations, suggesting that the selloff and subsequent price moves primarily forced leveraged bullish positions out of the market.
For investors, this combination matters: if BitMine pauses new purchases near its 5% cap while ETF demand remains weak, the market could become more reliant on spot buyers outside those channels to stabilize price.
Technical picture: $2,548 becomes a near-term line in the sand
Ethereum’s technical setup has deteriorated in the near term, according to the report. The daily chart weakened after the price fell below its 20-day exponential moving average and a horizontal support area around $2,636. Momentum indicators have also softened: the 14-day Relative Strength Index reportedly slipped to 45, and the Stochastic Oscillator moved into oversold territory near 13.
An oversold reading can accompany a rebound, but it does not confirm that a decline has ended. The report highlighted $2,548 as immediate support. A sustained break below that level would shift attention to the 50-day EMA near $2,503.
Additional downside markers cited include horizontal support around $2,355, the 100-day EMA near $2,334, and a broader base around $2,204. On the upside, recovery attempts would need Ethereum to reclaim $2,636 and the 20-day EMA near $2,647. If that zone is regained, the report listed resistance levels at $2,781, followed by $3,075 and $3,253.
With ETF flows reportedly negative and BitMine nearing the point where it would stop adding to its holdings, defending nearby support is likely to be central to Ethereum’s short-term outlook.
What to watch next
Investors will likely focus on whether ETF outflows continue and whether spot demand can counterbalance a potential step-down in BitMine’s weekly buying. In the near term, traders will also watch whether Ethereum can hold $2,548 or faces a test of lower support levels, as well as any further volatility tied to futures positioning and liquidation dynamics.
