The BMNR stock price hovered at the crucial support level of $20 as BitMine continued to accumulate Ethereum, and its fundamentals improved.
Summary
- BitMine’s stock price has formed a falling wedge pattern, pointing to a rebound.
- Data shows that Ethereum’s transactions and network fees have soared recently.
- The supply of ETH tokens in exchanges has continued falling this month.
BitMine stock has retreated by over 85%from its highest level in July last year. It is also slowly forming the highly bullish falling wedge pattern, pointing to a strong rebound.
In a statement, Tom Lee’s BitMine said that it continued to buy Ethereum (ETH) tokens last week, bringing its total holdings to over 4.326 million. It also holds 193 Bitcoin (BTC) and nearly $600 million in cash. Its other assets include $200 million in Beast Industries and $19 million in Eightco Holdings, a company that has invested in Worldcoin.
BitMine stock may ultimately benefit from Ethereum’s fundamentals, which have continued improving in the past few months, with third-party data showing relentless growth. Ethereum transactions, fees, and active addresses have continued to soar over the past few months, a trend that has accelerated after the Fusaka upgrade.
More data show that the amount of staked Ethereum continues to rise. The staking queue has jumped to over 4 million coins, with entry rising to over 70 days. Rising staking inflow is a sign that demand continues rising.
At the same time, data show that the supply of ETH tokens on exchanges has continued to fall and is now at its lowest level since 2016.
BMNR stock price prediction: Technical analysis
The daily timeframe chart shows that the BitMine stock price has been in a strong downward trend in the past few months. It plunged from a record high of $160 to the current $20.
On the positive side, the coin has formed a falling wedge pattern, which consists of two descending and converging trendlines.
This wedge is nearing its confluence, which could lead to a rebound soon. Also, the Relative Strength Index has moved from the oversold level of 30 to the current 32.
Therefore, the stock will likely have a strong bullish breakout in the coming days, potentially to the key resistance level at $35, its highest level in January this year.
On the other hand, a move below the lower side of the wedge will point to more downside in the near term.
