Tom Lee Calls ETH Bottom ‘In Next Few Hours’ as BitMine Doubles Down with $21M Buy

Fundstrat’s Tom Lee made his boldest Ethereum prediction yet, calling for Ether’s bottom to arrive within hours as BitMine Immersion Technologies purchased another $21.28 million worth of ETH, adding 4,871 tokens to bring holdings to 1.72 million ETH valued at $7.65 billion.

Lee’s prediction emerged through Mark Newton’s technical analysis, suggesting a constructive correction before a rally toward new highs near $5,100.

The forecast follows Lee’s previous accurate call on August 19, when he correctly predicted Ethereum’s temporary decline to the $4,075-$4,150 range before recovery.

During that time, BitMine has secured its position as the world’s largest Ethereum corporate treasury after aggressive accumulation since late June.

The Delaware-based firm disclosed total crypto and cash holdings of $8.82 billion following a $2.2 billion accumulation spree in a single week, ranking second among global crypto treasuries behind only MicroStrategy’s Bitcoin reserves.

The institutional buying wave extends beyond BitMine, with BlackRock purchasing $314.9 million worth of Ethereum while simultaneously reducing Bitcoin positions.

Corporate Ethereum holdings surged 127% in July to 2.7 million ETH worth $11.6 billion, with 70 entities now controlling 4.3 million ETH representing 3.6% of the total supply.

Institutional Giants Lead Ethereum Rotation From Bitcoin

BlackRock accelerated Ethereum accumulation 15 times faster than Bitcoin over the past 30 days, with ETH holdings growing 65% compared to just 4% Bitcoin growth.

The asset management giant’s strategic shift coincides with Ethereum ETFs amassing 6.5 million ETH through sustained daily inflows approaching 80,000 tokens.

Bitcoin whale activity supports the rotation narrative, with one major holder purchasing $128.32 million worth of Ethereum while reducing Bitcoin exposure.

The trend extends to political figures, with Trump reportedly adding $8.6 million in ETH alongside $10 million in Bitcoin.

Corporate competition intensified as BitMine filed for an additional $20 billion at-the-market equity offering expansion, boosting total stock sale capacity to $24.5 billion.

The proceeds target further ETH acquisitions as the company pursues acquiring 5% of Ethereum’s total supply, approximately six million tokens worth $22 billion.

Whale demand accelerated throughout August, driving a 25% monthly rally that outpaced Bitcoin’s 5.3% decline.

CryptoQuant CME data shows Ethereum futures open interest rising alongside price gains, while Bitcoin’s recent highs lack similar institutional participation signals.

Market Dynamics Support $5,000+ Trajectory Despite Short-Term Volatility

Earlier this month, selling pressure from whales, ETFs, and retail investors pushed Ethereum from $4,793 to $4,198 before a modest recovery.

However, following that, ETH has recovered and broken the new ATH above $5000, making August the best month for the crypto this year.

Moreover, Ethereum achieved historic milestones during the rally, becoming the fastest asset ever to reach $500 billion market cap, surpassing major companies and Bitcoin’s previous record.

Global search interest also reached its highest levels since 2021, while social media sentiment remained bearish despite price gains.

Technical Analysis Points to Imminent Recovery Toward $6,290 Target

Chart analysis reveals Ethereum testing crucial ascending trendline support around $4,300, with successful defense validating continued uptrend structure.

The Ichimoku cloud configuration shows ETH trading above bullish cloud formations, while RSI at 54.04 indicates neutral positioning supporting potential bottom formation.

Key resistance levels identify $4,447.86 as an immediate overhead challenge, followed by $5,376.56 and the ultimate target of $6,290.

The comprehensive support structure spans multiple cycles, with decisive breaks above the monthly open at $3,624.69 and the yearly open near $3,500, establishing a bullish longer-term framework.

Newton’s specific timeline calling for bottom formation “in next few hours” suggests rapid capitulation around $4,300 levels, followed by recovery toward $5,100-$5,450 range.

The projection implies a quick reversal pattern rather than an extended consolidation, consistent with institutional buying providing immediate support.

Volume analysis also reveals increased participation, with both buying and selling pressure evident.

However, the institutional accumulation scale creates different dynamics than typical retail-driven corrections.

Holding ascending trendline support around $4,300 would validate the bottom call and potentially trigger rapid advancement toward $5,100-$5,450 targets, with $6,290 representing a logical extension based on measured moves from current consolidation ranges.

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