The recent volatile ETH market has caused concern among investors, and there are two key signals worth noting: Firstly, Fundstrat analyst Tom Lee stated that ETH may 'hit the bottom within hours,' and secondly, institutions are making significant purchases, providing strong support for the market.
Tom Lee's prediction is not unfounded. On August 19, he accurately predicted that ETH would drop to the $4,075-$4,150 range before rebounding, and the subsequent market movement completely matched. This time he is more certain, with core support coming from technical analyst Mark Newton's charts—current adjustments are considered 'constructive pullbacks'; once consolidation ends, ETH is expected to launch towards a new high of $5,100.
The actions of institutions provide more direct confidence support.
BitMine: Recently spent over $21 million to increase its holdings by 4,871 ETH, currently holding 1.72 million ETH (valued at approximately $7.65 billion), firmly maintaining its position as the world's largest corporate holder of ETH. Its total holdings (cryptocurrency + cash) have risen to $8.82 billion, increasing by $2.2 billion in a week, ranking second in global crypto asset holdings, only behind MicroStrategy, which heavily invests in BTC, and it has also applied to expand its stock issuance, planning to use $20 billion to continue accumulating ETH, aiming for a total holding of 5% of the total supply (approximately 6 million ETH).
BlackRock: In the past 30 days, the speed of increasing ETH holdings has increased 15 times, with a 65% growth in holdings, cumulatively buying $314.9 million in ETH while reducing BTC positions, clearly signaling a 'rotation from BTC to ETH.'
More data confirms the popularity of ETH: In July, corporate ETH holdings surged by 127%, with 70 entities holding a total of 4.3 million ETH (accounting for 3.6% of the total supply); ETH ETFs are seeing daily inflows of nearly 80,000 ETH, with total holdings approaching 6.5 million ETH; Bitcoin whales and Trump have also joined the fray, with one large holder spending $128 million, and Trump reportedly adding $8.6 million in ETH holdings.
From a technical perspective, ETH is at a critical juncture. The current price is stabilizing above the $4,300 uptrend line, and the upward structure remains intact; the Ichimoku cloud indicator shows it is still above the bullish cloud, and the RSI indicator is at 54.04, in a neutral consolidation state, not overbought or oversold, aligning with Tom Lee's judgment of a 'quick reversal.'
Support and resistance levels are also very clear. On the support side, the monthly opening price of $3,624.69 and the annual opening price near $3,500 form a strong bottom; the resistance level first looks at $4,447.86, and after breaking through, it can be targeted at $5,376.56, with a further goal of $6,290.
Although there may still be short-term fluctuations (previously ETH dropped from $4,793 to $4,198, with obvious selling pressure from retail investors and some whales), this time institutional buying is concentrated and more inclined toward long-term positions, differing from retail investors' 'quick in and out' strategy. ETH has now rebounded above $5,000, with a monthly increase of 25% in August (while BTC fell by 5.3%), and the market capitalization exceeded $500 billion at a record speed, with global search volume also reaching its highest level since 2021, possibly making the market's bullish and bearish divergence a catalyst for accelerating the market.
Do you think Tom Lee's judgment of 'hitting the bottom within hours' will come true? Can ETH break through $5,450 this time? Feel free to share your thoughts in the comments. Follow Xiaowan, who will track institutional movements, technical breakout points, and other key market nodes in real-time.
