Ethereum Price Forecast: BitMine to launch ETH treasury as Ethereum investment products notch $430 million inflows

Ethereum price today: $2,480

• BitMine plans to implement an ETH treasury strategy following the launch of a $250 million private placement.
• Ethereum investment products notched nearly $430 million in net inflows last week.
• ETH struggled at the $2,510 key level after seeing a rejection near the 50-day and 200-day SMAs.

Ethereum (ETH) trades near $2,500 on Monday following the announcement by crypto mining company BitMine that it will launch an ETH treasury strategy using the net proceeds of its recent $250 million private placement. Meanwhile, Ethereum continues to attract institutional interest, as investment products tracking its price have recorded nearly $430 million in net inflows.

BitMine launches ETH treasury strategy amid strong Ethereum ETF inflows

BitMine announced the launch of a $250 million private placement to make ETH its primary treasury reserve asset, according to a press release on Monday.

The offering was led by MOZAYYX and a broad range of investment funds, including Founders Fund, Galaxy Digital, Kraken, Pantera Capital, and Fundstrat's CIO, Thomas Lee, who will now serve as Chairman of BitMine's Board of Directors.

The acquisition stems from increased interest in stablecoins following the GENIUS stablecoin bill passing the United States (US) Senate with bipartisan support.

"Stablecoins have proven to be the 'chatGPT' of crypto, leading to rapid adoption by consumers, merchants and financial services providers," said Lee in the press release.

Considering Ethereum hosts nearly 50% of the global stablecoin market, according to DefiLlama data, Lee sees ETH as the most crucial player in the stablecoin action.

"It [Ethereum] is also the architecture that future banks will have. When Goldman issues a stablecoin and JPMorgan does it on Ethereum as a Layer 1 blockchain, they're going to want to secure it by staking Ethereum. So, we're trying to get in front of that by creating an Ethereum treasury vehicle," Lee said in a CNBC interview on Monday.

The move signals increased interest in Ethereum amid the stablecoin wave as BitMine's ETH treasury strategy announcement comes after SharpLink Gaming, Bit Digital and BTCS launched their respective ETH treasuries.

A similar positive tone is evident across Ethereum investment products, which recorded $429 million in net inflows last week, according to CoinShares. The flows were dominated by demand from US investors, who logged $283.4 million in weekly net inflows through US spot ETH exchange-traded funds (ETFs), per SoSoValue data.

Meanwhile, options investors are watching for potential volatility in ETH over the next few days as the ongoing Ethereum Community Conference (ETHCC) takes place in Cannes.

"Ethereum traders [on Derive] are leaning bullish [as] roughly 30% of open interest is stacked on the $2.9K call, with another 10% at $3.2K. This positioning seems to be driven by anticipation of ETHCC in Cannes – a major event historically associated with product announcements and ecosystem growth," wrote founder of crypto options exchange Derive in a note to investors on Monday.

Ethereum Price Forecast: ETH faces critical barrier at $2,500

Ethereum experienced $70.27 million in futures liquidations over the past 24 hours, with long and short liquidations totaling $34.22 million and $36.05 million, respectively.

ETH saw a rejection again at the $2,510 key resistance on Monday, erasing its weekend gains. The resistance is strengthened by the convergence of the 50-day and 200-day Simple Moving Averages (SMAs).

ETH/USDT daily chart

On the way down, the top altcoin could hold the support level near the $2,300-$2,400 range — which ETH failed to break in the past week — strengthened by the 50-day Exponential Moving Average (EMA). If this support fails, ETH could bounce off key levels at the lower boundary of a broader symmetrical triangle near the 100-day SMA or the $2,110 support.

On the upside, ETH must maintain a firm move above the 200-day SMA to rally and test the upper boundary of the symmetrical triangle. If it smashes the symmetrical triangle hurdle, it could rise to retest the $2,850 key resistance.

The Relative Strength Index (RSI) is testing its neutral level, while the Stochastic Oscillator (Stoch) is above its midline, indicating a modest dominance in bullish momentum.