BMNR stock price hovered at the crucial $20 support level as BitMine continued to accumulate Ethereum and its fundamentals improved.
Summary
- BitMine stock price has formed a downtrend, indicating a rebound.
- Data shows that Ethereum transactions and network fees have skyrocketed recently.
- The supply of ETH tokens on exchanges continued to decline this month.
BitMine stock is down more than 85% from its high in July of last year. It is also slowly forming a very bullish falling wedge pattern, indicating a strong rebound.
In a statement, Tom Lee’s BitMine said it continued to purchase Ethereum (ETH) tokens last week, bringing its total holdings to more than 4.326 million. He also holds 193 Bitcoins (BTC) and almost $600 million in cash. His other assets include $200 million in Beast Industries and $19 million in Eightco Holdings, a company that invested in Worldcoin.
BitMine stock could ultimately benefit from Ethereum’s fundamentals, which have continued to improve over the past few months, with third-party data showing relentless growth. Ethereum transactions, fees, and active addresses have continued to skyrocket over the past few months, a trend that accelerated after the Fusaka upgrade.
Other data shows that the amount of Ethereum staked continues to increase. The staking queue has grown to over 4 million coins, with entry delay up to over 70 days. The increase in stake entries is a sign that demand continues to increase.
At the same time, data shows that the supply of ETH tokens on exchanges has continued to decline and is now at its lowest level since 2016.
BMNR Stock Price Prediction: Technical Analysis
The daily chart shows that the BitMine stock price has been in a strong downward trend over the past few months. It fell from an all-time high of $160 to the current $20.
On the positive side, the coin has formed a falling wedge pattern, consisting of two descending and converging trendlines.
This wedge is near its confluence, which could lead to a rebound soon. Additionally, the Relative Strength Index rose from the oversold level of 30 to the current level of 32.
Therefore, the stock will likely see a strong upside breakout in the coming days, potentially to the key resistance level at $35, its highest level in January of this year.
On the other hand, a move below the lower side of the wedge would indicate further decline in the near term.
