Ethereum Price Plunges 4.6% As Tom Lee’s BitMines Buys The Dip With Another $800M In ETH

The Ethereum price has slumped 4.3% in the past 24 hours to trade at $3,866.94 as of 3.03am a.m. EST.

Tom Lee’s BitMine Immersion Technologies again seized the opportunity to buy the dip, snapping up another 203,826 ETH for about $800 million.

That pushed its total ETH holdings to a massive 3.24 million tokens worth over $13 billion, about 2.7% of all ETH in circulation.

The firm has now purchased $1.6 billion worth of ETH since the market flash crash on Oct. 10. Lee called the downturn a “buying opportunity” with favorable risk/reward. 

Meanwhile, Ethereum’s ecosystem faces internal turmoil. A leaked note from developer Péter Szilágyi to the Ethereum Foundation criticized a “closed-door culture” where a handful of developers and venture investors dictate project success, eroding Ethereum’s decentralized ethos.

Polygon co-founder Sandeep Nailwal amplified these concerns, slamming the ecosystem’s politics for sidelining contributors like Polygon, a key Layer-2 solution. Nailwal suggested Polygon’s market value could soar by distancing itself from Ethereum’s brand. 

Is Ethereum Price Gearing Up for a Breakout?

On the daily chart, ETH is forming a symmetrical triangle pattern. Currently trading above $4,000, Ethereum is at a critical point, with price action indicating a potential breakout as bullish momentum persists.

The price of Ethereum is now likely heading toward a retest of the major support zone near $3,800, which aligns with the lower trendline of the triangle. 

The 50-day Simple Moving Average (SMA) remains positioned above the 200-day SMA, confirming that the long-term bullish trend for ETH remains intact despite the recent consolidation.

Nevertheless, the Relative Strength Index (RSI) at 58 is still in neutral momentum territory, suggesting that the asset is not overbought and has room to run higher after a breakout. Momentum in the 65-70 range would be strong bullish confirmation.

The Moving Average Convergence Divergence (MACD) currently reflects a healthy bullish trend, with the MACD line positioned above the signal line and the histogram remaining positive. However, a bearish crossover (the MACD falling below the signal line) would be a critical signal for traders to exercise caution.

ETH’s immediate action will be decided at the trendline. A successful bounce here could ignite bullish momentum, whereas a breakdown would confirm bearish control.

For the bulls, defending the $3,800 support is crucial. If buying pressure returns and a successful bounce occurs, the immediate target is a reclaim of the $4,100 resistance.

A clean breakout above the symmetrical triangle could propel the price toward $4,285 and potentially fuel a larger run, targeting $6,000 or higher.

On the other hand, $3,800 serves as the first major support. Failure to hold this level might lead to a further bearish continuation, with Ethereum risking a deeper correction with the next critical support level around $3,600.