Ethereum Price Holds $3,800 While BitMine Opts for $1B Stock Buyback Over ETH

The Ethereum price has surged 0.84% in the last 24 hours, to trade at $3,811.00, on a 4.72% drop in the daily trading volume, to $35.2 billion.

Ethereum Price Steadies as BitMine Bets on $1B Stock Buyback

The Slight jump in ETH price comes as BitMine Immersion Technologies, which owns the world’s largest public Ethereum treasury, announced a huge $1 billion stock buyback instead of buying more ETH. The company made this decision after its share price dropped well below the value of its assets.

BitMine, led by Wall Street strategist Tom Lee, will buy back its stock to increase the value for each shareholder and help boost confidence in its large Ethereum holdings.

Currently BitMine holds about 625,000 ETH, worth roughly $2.35 billion, plus cash of nearly $400 and some Bitcoin. Tom Lee said that sometimes the best way to use money isn’t to buy more ETH, but to invest in their stock when it’s trading low. This buyback is open-ended, allowing BitMine to purchase shares anytime they drop below asset value.

While BitMine has been aggressively collecting ETH and has even hinted at trying to control 5% of the total Ethereum supply, the company says that at current high ETH prices, buying back stock is a better use of capital. 

Ethereum bulls were surprised as they expected treasury crypto firms like BitMine to keep buying ETH with every spare dollar. Instead, BitMine focuses on its stock to boost shareholder value while keeping cash ready to buy more ETH if prices become attractive.

Ethereum Price Holds Above $3,800 – Can The Bulls Ignite a New Rally?

Ethereum’s price stayed above $3,800 through the announcement, showing strong support and momentum in the market. ETH has recently surged due to record ETF inflows and rising demand, nearing $4,000.

The price is above the 50 and 200-day Simple Moving Averages at $2,921 and $2,493, showing a healthy long-term trend. Bulls stay in control as long as ETH is above $3,720. 

ETHUSD Analysis Source: Tradingview

Momentum indicators agree. The RSI is 75.53, showing strong buying but in overbought territory. MACD is positive but with low histogram bars, suggesting a brief pause before a possible rise. The Average Directional Index is at 49.83, confirming the bullish trend is strong and likely to continue until market sentiment changes.

Should ETH break $3,880, the next targets are $4,200 and $4,500, with some experts eyeing $4,800.While BitMine is pausing large ETH purchases to focus on its undervalued stock, Ethereum’s price remains strong and technically poised for further gains if buyers stay active.

For now, the $3,800 support level is holding firm, providing a potential launchpad for the next major move.