Tom Lee Predicts Ethereum Bottom as BitMine Purchases $21 Million in ETH

Fundstrat Chief Calls ETH Bottom Within Hours

Fundstrat Global Advisors managing partner Tom Lee predicted that Ethereum would reach its bottom within hours on Tuesday as cryptocurrency markets experienced significant turbulence. Lee made this bold prediction while his ETH treasury firm BitMine simultaneously purchased another $21 million worth of Ethereum tokens.

"Calling ETH bottom to happen in next few hours," Lee announced on X at 1 am UTC Tuesday as crypto markets faced substantial selling pressure during a $200 billion market cap liquidation event.

The timing of Lee's prediction proved potentially accurate, as Ethereum had already begun recovering at the time of writing, climbing back above the $4,430 price level.

Technical Analysis Supports Bullish Outlook

Lee's prediction coincided with analysis from Mark Newton, managing director of technical strategy at Fundstrat Global Advisors, who described Ethereum as presenting "very good risk/reward" opportunities at current levels. Newton expressed skepticism about ETH breaking below previous trend lines or last week's low.

"Ideally, this should bottom out sometime in the next 12 hours near $4,300 and start to push back up to new highs and get above $5,100 and up to near $5,400 to $5,450," Newton projected.

Ethereum Down 11% From All-Time High

Lee's market call emerged during a broader cryptocurrency crash triggered by Bitcoin's decline to seven-week lows on Tuesday morning. Ethereum suffered alongside Bitcoin, dropping more than 7% to reach a bottom of $4,313 on Coinbase according to trading data.

The decline represented an 11% correction from Ethereum's recent all-time high, creating what analysts viewed as a potential buying opportunity for institutional investors.

BitMine Accumulates $7.5 Billion in Ethereum Holdings

BitMine Immersion Technologies continued its aggressive Ethereum accumulation strategy by purchasing 4,871 ETH worth $21.3 million during Tuesday's market dip, according to Arkham Intelligence data.

This latest purchase brought BitMine's total Ethereum holdings to 1.72 million ETH, valued at approximately $7.5 billion at current market prices. The acquisition demonstrates continued institutional confidence in Ethereum's long-term prospects despite short-term volatility.

On Monday, BitMine disclosed increasing its combined crypto and cash holdings by $2.2 billion to reach $8.8 billion total, adding over 190,500 tokens during the past week alone.

Corporate Treasury Holdings Reach New Records

BitMine's crypto plus cash net asset value per share climbed to $39.84, representing substantial growth from $22.84 recorded in late July. The firm calculates crypto NAV by dividing crypto and cash asset value by its 221.5 million fully diluted shares outstanding.

As the clear market leader in Ethereum corporate treasuries, BitMine controls a 40% share of the total 4.3 million ETH held by corporate entities according to StrategyEthReserve data.

Bitcoin Treasury Leader Also Buys the Dip

Following similar accumulation strategies, Michael Saylor's Strategy purchased 3,081 BTC for $357 million at $115,829 per Bitcoin on Monday, demonstrating that major cryptocurrency treasury firms view market corrections as strategic buying opportunities.

The coordinated purchasing activity by institutional players suggests growing confidence in cryptocurrency fundamentals despite temporary market volatility.

Market Recovery Signals Potential Bottom

Early signs of market recovery following Lee's prediction indicate that institutional buying interest may have successfully identified the short-term price floor for Ethereum. The combination of technical analysis, strategic institutional purchases, and market sentiment suggests potential stabilization ahead.

Corporate treasury accumulation patterns continue supporting long-term bullish sentiment for major cryptocurrencies, with both Ethereum and Bitcoin benefiting from institutional adoption strategies during market downturns.

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