The stock price of BitMine could be preparing for a strong rebound. The move may happen if Ethereum follows the recovery pattern predicted by company chairman Tom Lee.
BMNR shares were trading near $20, a key support level where the stock has consolidated in recent days. However, it remains far below its all-time high of $160.
Lee believes the ongoing downturn in Ethereum will end with a V-shaped recovery. He noted that Ethereum has suffered eight major drawdowns since 2018. Each one was followed by a sharp rebound.
He also said Ethereum has strong fundamentals. It remains the largest smart contract blockchain, with major institutions like JPMorgan Chase using its technology. Exchange supply has fallen to multi-year lows, while the staking queue has hit record highs.
BitMine has continued to increase its Ethereum holdings. The company now owns over 4.3 million ETH, worth more than $8.4 billion. It bought over 157,000 coins in the last 30 days and earns yield by staking them. It also invests its cash in other opportunities, including a $200 million stake in Beast Industries, owned by YouTuber MrBeast.
From a technical view, BMNR stock has formed a falling wedge pattern on the daily chart. This pattern often signals a bullish breakout when the two descending trendlines converge.
The Relative Strength Index has climbed from an oversold level of 25 to 37 and continues to trend higher. If momentum builds, analysts say the next key target is $34, about 72% above current levels.
For now, investors are watching Ethereum closely. If Lee’s V-shaped recovery call proves right, BitMine stock could be one of the biggest beneficiaries.
