Is Tom Lee’s BitMine on a Buying Spree for Ether as Analyst Eyes Bullish Sentiment for ETH?

Ethereum (ETH) price has been attempting to rally beyond $4k without success in the past few days. However, the large-cap altcoin, with a fully diluted valuation of about $480 billion, has been retesting a crucial support level around $3.9k, which previously acted as a resistance for the last three years.

Why Is Ethereum Price Bullish in the Midterm

High Demand from Whale Investors

Earlier on Monday, BitMine reported that it purchased about 203.8k ETH during the past week. According to on-chain data analysis, three new addresses, likely belonging to BitMine, accumulated Ether valued at about $250 million on Monday during the mid-North American session.

Last week, Ethereum’s investment product recorded a net cash inflow of about $205 million, thus increasing its year-to-date capital inflow to about $14.2 billion and its total assets under management (AUM) to around $34.5 billion.

Robust Ecosystem

The demand for Ether from whale investors is largely influenced by the network’s popularity in the DeFi space. According to market data from DeFiLlama, the Ethereum network has a total value locked of about $86 billion and a stablecoin market cap of around $163 billion.

As such, the Ethereum network has attracted more organic investors and is well-positioned to attract more users amid the mainstream adoption of web3 products fueled by clear regulatory frameworks.

Technical Tailwinds

The ETH price remains bullish in the midterm based on the technical outlook. For instance, the Bollinger Bands have been squeezing and forming a ‘W’ bottom, thus signaling more upside volatility in the near term.

Crypto analyst Ali Martinez noted that Ether price is well positioned to hit $4.4k after rebounding from its lower border of a falling trend.