Ethereum Price Dips Below $3K as Tom Lee’s Bitmine Expands Massive ETH Treasury

The Ethereum price has slid below $3k to trade at $2,950 as Tom Lee’s crypto firm, Bitmine, stepped up its accumulation during the recent market pullback.

While ETH has struggled to hold key psychological support, institutional buyers appear to be using the weakness as a long-term entry opportunity. Bitmine recently increased its Ethereum holdings by adding 44,463 ETH in a transaction valued at approximately $130 million.

This latest purchase lifted the company’s total ETH reserves to around 4.11 million tokens, giving it control of roughly 3.41% of Ethereum’s total supply. The move further strengthens Bitmine’s position as one of the largest institutional holders of ETH.

The firm is actively positioning itself to become the world’s largest Ethereum treasury. As part of this strategy, Bitmine has already staked 408,627 ETH, allowing it to earn yield while supporting the Ethereum network. Looking ahead, the company plans to expand its staking operations by adopting the MAVAN validator network starting in 2026.

According to Tom Lee, Bitmine has been the largest source of fresh ETH buying during the recent period of market weakness. He explained that year-end conditions, including seasonal tax-loss selling, placed pressure on crypto prices and created attractive accumulation windows. Bitmine took advantage of this environment to build its position at scale.

Bitmine’s long-term strategy mirrors a broader trend of institutional accumulation also seen among Ethereum-focused treasury firms such as Trend Research. The company’s ultimate goal, described as the “alchemy of 5%,” is to eventually own 5% of Ethereum’s total supply, raising questions about how sustained institutional demand could affect ETH liquidity and circulation over time.

Ethereum Risks Deeper Drop as Bearish Chart Pattern Takes Shape

The Ethereum price remains under pressure after failing to hold above the $4,500–$5,000 region earlier in the year. On the daily chart, price action now shows a clear inverted cup and handle formation, a pattern that often signals continuation to the downside.

ETH is currently trading around $2,950, sitting just above a key support zone that could decide the next major move. Earlier, Ethereum spent several months consolidating around the $1,500–$1,600 area, which acted as a strong base for the rally that followed, eventually peaking near the $5,000 mark.

However, after reaching that high, bullish momentum faded. The price began forming lower highs and lower lows, confirming a shift into a broader downtrend.

ETHUSDT Chart Analysis Source: Tradingview

The $2,900–$3,000 area is now acting as an important support level. This zone previously served as both resistance and support, making it technically significant. A daily close below this level would strengthen the bearish case and could open the door for a deeper decline.

Based on the inverted cup and handle structure, a breakdown could expose ETH to a move toward the next major support zone near $1,000–$1,200 over the medium term. The Relative Strength Index (RSI) is currently around 44, below the neutral 50 level. This shows that buyers are losing control, and selling pressure remains dominant.

While ETH is not yet oversold, the weak RSI suggests limited upside unless strong buying returns. On the upside, Ethereum would need to reclaim $3,200 first to signal short-term relief. A stronger recovery would require a break above the $3,500–$3,600 resistance area, where previous selling pressure was heavy. Without such a move, any bounce is likely to remain corrective rather than trend-changing.

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