The cryptocurrency market opened the new weekly candle bullish as Bitcoin tested the $70k level.
Ether, the second-largest cryptocurrency by market cap, also rallied past the $2k psychological mark but faced resistance around the $2,100 region.
It has now dropped below $2k as the market lost momentum.
The poor performance over the last few hours came despite Ethereum (ETH) treasury firm BitMine Immersion (BMNR) buying another 50,928 ETH last week.
The company now holds 4.47 million ETH, worth about $8.9 billion at the time of publication, representing 3.71% of the entire ETH circulation.
BitMine continues to accumulate more ETH tokens
Tom Lee’s BitMine Immersion Technologies announced on Monday that it spent another $98 million to purchase 50,928 ETH last week.
This acquisition means that the company now holds 4.47 million ETH, representing 3.71% of the entire ETH circulation, bringing the company closer to its goal of accumulating 5% of ETH’s circulating supply.
Lee stated that the company continues its Ethereum treasury strategy as the market moves through the later stages of this mini crypto winter.
Furthermore, the company also holds 3.04 million ETH across three staking providers, which it claims is earning an annualized yield of 2.86% or $172 million.
BitMine is also working to launch a staking infrastructure known as the Made in America Validator Network (MAVAN).
In an interview with CNBC on Monday, Lee predicted that March will likely be a bullish month for crypto and major stocks.
He believes that a majority of these assets have found a bottom.
The company also reported holdings of $200 million in Beast Industries, a 195 Bitcoin (BTC) stack, a $14 million stake in Worldcoin treasury Eightco Holdings (ORBS), and total cash of $868 million.
ETH’s rally on Monday comes as spot Ethereum ETFs posted their strongest flow since mid-January, recording nearly $117 million in net inflows last week.
ETH dips below $2k as $2,100 rejection candle holds
The ETH/USD 4-hour chart remains bearish as the cryptocurrency market remains bearish.
ETH rallied to $2,100 before retracing to now trade below $2k.
The volatility saw over $91 million worth of leveraged Ether positions wiped out from the market, with short liquidations accounting for $55 million.
The near term bias has switched bearish as Ether has dropped below the 20-period Exponential Moving Average (EMA) at $1,975.
The Relative Strength Index (RSI) hovers near 52, signalling a fading bullish momentum.
However, the bounce from last week’s dip toward $1,865 has been accompanied by firm volumes on up candles, reinforcing buyer control on Monday.
The bulls failed to take out the $2,108 resistance level on Monday.
However, if the bulls try again and succeed, Ether could rally towards the next upside objectives at $2,389 and $2,746.
With the $1,975 support level failing, Ether could revisit the recent dip of $1,865, with stronger structural backing at $1,741.
However, a decisive dip below $1,741 would neutralize the present bullish bias and expose deeper supports at $1,524 and $1,405.
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