Key Takeaways
Why Ethereum is rising: Institutional flows and whale stacking are soaking up ETH supply, while BitMine’s $24.5 billion acquisition program adds massive buy-side pressure.
Why Ethereum [ETH] is rising?
Ethereum established a higher low versus Bitcoin [BTC] during the (10th-11th of August) window, setting up a clean bullish divergence off the $4,300 resistance.
Simultaneously, Bitcoin dominance (BTC.D) broke below the 60% level, confirming rotation from BTC into ETH. On the surface, it looks like a routine risk rotation. But zoom in, and a structural shift is taking shape.
Why Ethereum is rising looks more than luck
Ethereum kicked off August with ROI already nearing 30%, and we’re not even two weekly candles in. The result? ETH has breached the $4,600 supply wall for the first time since 2021.
At press time, on-chain and derivatives metrics were heating up. RSI was pinned in the overbought zone, while daily Open Interest (OI) spiked 12% to a record $64 billion. That’s heavy positioning, signaling strong momentum.
But with so much long exposure, a short-term pullback can’t be ruled out. Flashback to late July, when $10 billion in OI unwound, triggered ETH’s 15% weekly dip from its $3.9K peak.
Source: TradingView (ETH/USDT)
Are we in for a repeat rally? The answer starts with why Ethereum is rising.
As AMBCrypto flagged, institutional flows are soaking up supply. On the 11th of August, Ethereum ETFs hit $1.019 billion in inflows, led by BlackRock’s ETHA, which has doubled to $10 billion in three months.
That explains ETH’s 7% pop in 24 hours. That it’s not just rotation. Instead, aggressive buy-side accumulation is pressuring the order book. And yet, that alone doesn’t fully clarify why Ethereum is rising higher.
BitMine’s $20B boost fuels ETH rally
Ethereum treasury player BitMine [BMNR] has ramped up its ETH acquisition program to $24.5 billion, aiming to capture about 5% of the circulating supply.
For context, they filed to expand their at-the-market (ATM) equity program by $20 billion, marking a 5x jump from the previous $4.5 billion, supercharging their firepower to scoop more ETH.
Technically, with 121 million ETH in circulation, 5% comes to roughly 6.05 million ETH, which works out to an average buy-in around $4,050 per ETH. That’s serious buy-side pressure creeping under the hood.
Source: TradingView (BMNR/USD)
So why Ethereum is rising?
The market’s reacting hard to BitMine’s mega prospectus, signaling Ethereum’s role as more than just a speculative play.
With this, BitMine now holds the biggest ETH treasury out there.
The impact? ETH hit four-year highs, BMNR stock jumped 21% to $70, and ETH is now only 5.25% shy of breaking into price discovery – A milestone that looks imminent.