Ethereum Price Tumbles As Tom Lee’s BitMine Buys Another $320M In ETH — ‘Legend Or A Fool?’ Analyst Asks

The Ethereum price tumbled 1.3% in the past 24 hours to trade at $4,123.62 as of 5.07 a.m. EST on trading volume that plunged 16% to $30 billion.

This comes as Tom Lee’s BitMine Immersion Technologies (BMNR) said it bought another 77,055 Ethereum tokens worth roughly $320 million over the past week.

Lee explained the purchases as triggered by signs of stabilization in crypto markets, more positive US–China trade dynamics, and a historically positive correlation between equities and crypto.

The latest purchases were made as the ETH price gained ground, with a 6.2% rebound over the week, according to CoinGecko.

BitMine is aggressively cementing its status as the world’s largest institutional holder of ETH with about 1.7 million ETH worth more than $7 billion, according to Ethereum Treasuries.

Across all crypto treasury firms, BitMine ranks second only to Michael Saylor’s Strategy, which holds 640,808 BTC valued at more than $73.6 billion.

Meanwhile, crypto commentator Ryan S. Adams flagged the move on X, asking whether Lee’s bet is that of a “legend or a fool.”

Ethereum Price Holds Above Key Support, Setting Stage For Potential Upside

After reaching an annual high of around $4,954, ETH entered a consolidation phase, retracing to the $3,800 zone on the 3-day chart.

This retracement followed a strong mid-year rally that saw the Ethereum price reclaim major moving averages and extend past critical Fibonacci retracement levels.

Despite the recent cooling period, Ethereum continues to trade above both the 50-day and 200-day Simple Moving Averages (SMAs), indicating a sustained bullish structure.

The 50-day SMA currently sits near $3,731, serving as dynamic support, while the 200-day SMA at $3,096 reinforces the bullish rally.

The Relative Strength Index (RSI) is around 51.04, indicating neutral momentum with buying and selling pressures currently balanced. This suggests that ETH could remain range-bound in the short term, consolidating between support at $3,800 and resistance near $4,281.

Meanwhile, the 0.382 retracement level at $3,871 has held as immediate support, while the 0.5 retracement at $3,536 represents the next significant cushion if sellers push lower.

On the upside, the resistance at $4,281 remains significant.

A confirmed breakout above this could propel ETH toward the $4,950 high, followed by potential Fibonacci extension targets around $5,727.

ETH Targets $4,900 As Momentum Builds

Based on current technical indicators, Ethereum appears poised for a potential rebound.

If bullish momentum strengthens and the ETH price breaks above the $4,281 resistance, the next possible target could be the psychological $5,000 level, which coincides with the prior swing high around $4,954.

Conversely, if bearish pressure resurfaces, the price of ETH could retest support at the 50-day SMA ($3,731) or the 0.5 Fib zone near $3,536, providing an opportunity for bulls to re-enter at lower levels.