Ethereum News: ETH Bullish Leverage Vulnerability Highlights, Can BitMine's $140 Million Buy Order Save the Market?

New York Stock Exchange-listed company BitMine Immersion Technologies recently made another large purchase of 48,049 ETH, valued at approximately $140.6 million, bringing its total ETH holdings close to 4 million, worth up to $11.6 billion. This move demonstrates the long-term confidence in Ethereum held by institutions represented by Tom Lee. However, on-chain data also reveals that the Ethereum derivatives market is overly optimistic: funding rates have surged 268% to 0.0063, and a large number of leveraged long liquidation points are clustered near key price levels. The market presents a contradictory situation of “steadfast spot accumulation” and “extreme leverage crowding,” with a volatility-driven price “reset” risk intensifying.

Whale Emerges: BitMine’s $140 Million Big Bet and Institutional Holdings Map

While the market remains anxious about short-term fluctuations, true whales are quietly positioning. Recently, BitMine Immersion Technologies, co-founded by well-known crypto analyst Tom Lee, shook the market with a transaction: as Ethereum’s price fell back to around $2,928, it bought ETH worth $140.6 million in one go via FalconX. This was not a spur-of-the-moment move but a firm execution of its long-term strategy. In just the first half of December 2025, the company accumulated over 240,000 ETH at an average cost of about $3,074.

Core Data on BitMine’s Recent Accumulation and Holdings

Amount added: 48,049 ETH

Value at purchase: approximately $140.6 million

Average purchase price: about $2,928

Total holdings: 3,967,210 ETH (over 3.2% of circulating supply)

Total portfolio value: approximately $11.6 billion

Long-term goal: control 5% of Ethereum’s total supply

This move secures BitMine’s position as the largest known enterprise Ethereum holder globally, with total crypto assets (Ethereum, Bitcoin) and cash reserves totaling about $13.2 billion, ranking second among publicly listed crypto holdings, only behind MicroStrategy led by Michael Saylor. Tom Lee, Chairman of BitMine, publicly urges investors to remain optimistic. The company’s stock, BMNR, has gained over 396% year-to-date, clearly indicating that some institutional investors view Ethereum as a long-term strategic reserve comparable to core assets, rather than short-term trading chips.

This institutional wave is not an isolated case. According to CoinGecko data, several listed companies like SharpLink Gaming and The Ether Machine have also built substantial ETH treasuries. Behind this is recognition of Ethereum’s role as a core infrastructure for DeFi, NFTs, and asset tokenization. The continuous buying by whales has established a solid “confidence bottom” for Ethereum’s price at the spot level.

Underlying Currents of Enthusiasm: Leverage Accumulation and High Funding Rate Warnings

Contrasting sharply with the steady calm of the spot market is the extreme enthusiasm in derivatives markets. Currently, Ethereum’s perpetual contract funding rate has surged to 0.0063, meaning long position holders must pay high fees to shorts to maintain their positions. This level is often seen as a clear signal of “overheated” market sentiment. Meanwhile, active buy volume (Taker Buy Volume) continues to dominate, indicating traders are actively chasing gains with market orders rather than patiently waiting for a pullback. This pattern can rapidly push prices higher but also means the rally is built on a continuous influx of new capital, making it fragile.

This leverage-driven optimism creates a delicate balance. On one hand, it amplifies upward momentum; on the other, small price retracements could trigger chain reactions. Data shows that within the $2,910 to $2,890 range, there are densely packed long leverage liquidation points. Once prices fall into this zone, automated forced liquidations could trigger a “longs’ cascade,” forming a “liquidity trap.” Additionally, whales have deposited $1.2 million USDC on HyperLiquid to open 25x leveraged long positions, further intensifying market fragility.

Thus, the market is at a paradoxical crossroads: long-term, value-based spot accumulation and short-term, emotion-driven leverage speculation both point upward. However, the latter, like a tower built on quicksand, is highly sensitive to liquidity and sentiment shifts. BitMine’s $140 million buy provides strong psychological and practical support, but whether it can fully offset systemic risks from excessive derivatives leverage remains uncertain.

Key Price Levels and Next Steps for Ethereum

Currently, Ethereum’s price hovers around $2,940, with fierce battles expected at several key levels. On the upside, if buying pressure persists, the primary target is to break through the $2,990 to $3,020 zone. Above this area, short liquidation points are relatively sparse; a successful breakout could trigger a short squeeze, pushing prices higher. However, this depends on derivatives market optimism holding and spot demand continuing.

On the downside, $2,900 is a critical psychological and technical support level. If broken, prices could quickly slide into the dense liquidation zone between $2,910 and $2,890. As mentioned, this area is a “powder keg” in current market structure; a breach could trigger sharp technical sell-offs, driving prices down to $2,800 or lower. Traders should closely monitor reactions and volume around these key levels.

Overall, Ethereum’s short-term trajectory depends less on new positive catalysts and more on whether it can “digest” existing excessive leverage. The most likely scenario involves a series of sharp price movements—either upward squeezes or downward cleansings—to clear unstable high-leverage positions and enable healthier turnover. If spot accumulation continues, Ethereum could then gain more sustainable upward momentum. For traders, a cautious approach is advisable now—avoiding chasing at high funding rates and paying attention to liquidation heatmaps.

Insights from BitMine on Corporate Crypto Asset Strategies

BitMine’s case offers an excellent example of how listed companies allocate crypto assets. Its core strategy can be summarized as “Dollar-cost averaging in bear markets, viewing crypto as strategic reserves”. Unlike retail investors, these companies have transparent balance sheets, stable cash flows (BitMine holds $1 billion in cash), and clear long-term goals (holding 5% of Ethereum’s supply). Their buying behavior often runs counter to short-term market sentiment, emphasizing the long-term fundamentals of blockchain networks and their infrastructure role in the future digital economy.

This “corporate treasury” model is changing the investor landscape in crypto markets. It introduces valuation anchors linked to traditional metrics (like mNAV) and may attract more institutional players seeking diversification. For retail investors, tracking these listed companies’ holdings and average costs can serve as a valuable sentiment and valuation indicator, but should not replace independent analysis and risk management.

In summary, Ethereum stands at a crossroads shaped by institutional conviction and retail leverage. BitMine’s confident $140 million buy-in injects long-term confidence and underscores Ethereum’s rising prominence in mainstream finance. However, the overcrowded derivatives market and high funding costs act as a Damocles sword, foreshadowing increased short-term volatility. The market may need a “stress test” to resolve leverage risks. Ultimately, only when speculative bubbles are pricked and solid spot accumulation persists can a more sustainable bull trend emerge. For observers, this is not just a price game but a painful but necessary step in market maturation.