Ethereum Price Outlook...BitMine's Purchase of 100,000 ETH and Declaration of 'Crypto Spring'

▲ Ethereum (ETH) ©

Ethereum has entered a phase attempting to break through a key resistance level, driven by large-scale institutional accumulation and statements about a 'crypto spring'.

According to investment media FXStreet on May 4 (local time), Ethereum (ETH) is trading around $2,350 and attempting to re-break the $2,388 resistance level. In the last 24 hours, liquidations worth approximately $137.8 million occurred, of which $93.4 million was attributed to short squeezes, increasing upward pressure.

Institutional demand served as the main driving force for the rise. BitMine Immersion Technologies additionally purchased 101,745 ETH last week, expanding its total holdings to 5.18 million ETH. Simultaneously, it additionally staked 661,168 ETH, bringing the total staked amount to 4.36 million ETH, with annual staking revenue reaching approximately $297 million.

Tom Lee, Chairman of BitMine, bolstered market sentiment by stating, "Crypto spring has begun." He identified the trend of blockchain tokenization on Wall Street and the need for public blockchains by AI systems as factors contributing to Ethereum's rise. He also assessed that the market's upward phase has begun regardless of the passage of the US cryptocurrency market structure bill, the Clarity Act.

However, institutional fund flows show a mixed picture. According to SoSoValue, Ethereum spot ETFs ended a three-week consecutive inflow streak, recording a net outflow of $82 million last week. This is identified as a variable that could limit the pace of the short-term rise.

Technically, the upward structure is maintained. Ethereum is trading above its 20-day, 50-day, and 100-day exponential moving averages, maintaining a bullish trend, and the Relative Strength Index is around 58, indicating remaining upward potential. If it breaks through $2,388 on a daily closing basis, further upward paths to $2,746 and then $3,411 could open. Conversely, if it falls, the $2,300 and $2,256 levels are suggested as primary support zones.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*