BMNR’s Ethereum Bet Comes Under Scrutiny After Massive Decline – Here Is Why Whales Remain Bullish on ETH

• Ethereum’s $2,000 support has become a key battleground after three straight weeks of losses.
• BitMine’s 90% decline from its peak has raised questions about its aggressive ETH accumulation strategy.
• Whale wallets continue accumulating ETH, creating a sharp contrast with weak market sentiment.

Ethereum is once again sitting at a critical point as the broader market shifts back into risk-off mode. Major support levels across crypto are starting to weaken, and ETH’s $2,000 zone has now become the level traders are watching most closely. After three straight weeks of losses and a decline of nearly 15%, Ethereum is looking fragile, with buyers struggling to defend one of its most important psychological and technical areas.

A clean breakdown below this level could open the door to a much deeper capitulation move. That is why the current setup feels so tense. ETH has not fully broken down yet, but the margin for error is getting thin. When an asset trades this close to a major support level while sentiment is already weak, even a small push from sellers can quickly turn into something larger.

BitMine’s Sharp Decline Adds More Pressure

This backdrop makes the latest BitMine update even more interesting. BitMine, known as the largest Ethereum DAT, has now fallen almost 90% from its $161 peak reached last year. That kind of collapse is hard to ignore, especially when it comes from a company so closely tied to Ethereum exposure.

Tom Lee’s position has also taken a major hit. His portfolio has given back a large portion of its unrealized gains, with profits now down nearly 43%. At the time of writing, that still leaves roughly $8 billion in total profit, which is huge, but the decline shows just how much momentum has faded from earlier highs.

BitMine has reportedly accumulated more than 5 million ETH in only one year, bringing its total Ethereum holdings to around $10 billion. That represents roughly 4.5% of ETH’s circulating supply. Still, with BMNR down sharply from its highs and portfolio gains shrinking fast, traders are now questioning whether the company’s 5% ETH target remains realistic, or whether the market is becoming too heavy for that goal.

Whale Accumulation Tells a Different Story

Even with all the pressure, Ethereum’s largest holders do not appear to be backing away. Data from Santiment shows that wallets holding at least 100,000 ETH now control around 17.41 million ETH. That marks the highest level in nine weeks and gives these large holders about 22.03% of the total ETH supply, a 10-week high.

This creates an important divergence. On one side, Ethereum’s price action looks weak, sentiment is shaky, and BitMine-related concerns are adding fuel to market fear. On the other side, whales are still accumulating, not distributing. That suggests the biggest holders may still see the current pullback as an opportunity rather than a reason to exit.

It also shows that the recent FUD has not fully reached the top cohorts of the market. Retail traders may be nervous, and leveraged traders may be reducing exposure, but the largest Ethereum wallets are still building their positions quietly. That does not guarantee a rebound, of course, but it does give bulls something to hold onto.

ETH Still Has a Rebound Window, But Caution Remains

From a technical perspective, Ethereum’s $2,000 support has not completely failed yet. As long as this level remains intact, a rebound scenario is still possible. If buyers step in with enough strength, ETH could stabilize and begin recovering from the current pressure zone.

However, the setup remains delicate. Ethereum continues to lag behind Bitcoin on a relative strength basis, and that weakness raises the stakes for any recovery attempt. If ETH cannot defend support or reclaim momentum soon, confidence could weaken further, especially among traders already watching BMNR’s decline as a warning sign.

For now, Ethereum is caught between two powerful forces. The market structure still leans cautious, with downside risk clearly present. But whale accumulation remains strong, suggesting long-term conviction has not disappeared. That contrast may define Ethereum’s next major move, whether it turns into a relief bounce or a deeper breakdown.

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