The crypto market lost more than $200 billion in value in just a few days, but not everyone sees this as a warning sign. According to Fundstrat’s Tom Lee, Ethereum has already hit its bottom. Lee said it is only “a matter of hours” before the second-largest cryptocurrency rebounds, and his company BitMine has doubled down on its buying strategy.
What Happened
The sharp drop pushed the Ethereum price to $4,313, down 11% from its recent all-time high. However, ETH quickly bounced back, showing strong support near the $4,300 level. Lee described the current levels as a “favorable risk/reward,” pointing out that his analysts project a rebound toward $5,100–$5,450.
Market watchers agree that $4,300 is the critical line. Falling below this would signal weak confidence, but holding it could confirm the bottom. “If Ethereum stays above support, the market will turn quickly,” said one analyst following the trend.
BitMine Leads in Crypto Mining Growth
Retail investors saw losses and feared continued losses, but BitMine saw a correction and an opportunity. The firm bought 4,871 ETH for $21.3 million. This purchase increased BitMine’s treasury to 1.72 million ETH, valued at nearly $7.5 billion. That is almost 40% of the total ETH reserves held by corporations worldwide.
In just one week, BitMine added $2.2 billion to its holdings, lifting its NAV/share to $39.84 from $22.84 in July. This aggressive buying strategy demonstrates confidence in Ethereum’s upside, despite recent volatility.
For context, Michael Saylor’s Micro Strategy also made a move, purchasing 3,081 BTC worth $357 million during the same period. Together, these large-scale purchases underscore how corporate treasuries are influencing the direction of the crypto market.
Bitcoin Whales Move Into Ethereum
Outside of institutional treasuries, whales’ actions are impacting the market. Arkham data shows that nine wallet addresses purchased from Bitgo and Galaxy nearly $456 million worth of Ethereum in just one day.
According to Nansen, this represents a “natural rotation” of large investors shifting from Bitcoin to Ethereum in pursuit of higher upside. On-chain analyst Willy Woo noted that ETH daily inflows have reached $0.9 billion, nearly equal to Bitcoin’s $1 billion daily inflow.
Why Ethereum Leads the Market
Ethereum continues to gain traction for several reasons. Corporate treasuries, such as BitMine, are adding aggressively, while ETF inflows into ETH are hitting new records. Additionally, over 30% of the supply is locked in Ethereum staking, reducing available liquidity.
With altseason 2025 approaching, analysts believe ETH is the frontrunner to set new all-time highs. “Ethereum has the strongest positioning in the market right now,” one strategist said.
Meanwhile, savvy investors are also diversifying their portfolios. They are adding Chainlink (LINK), Ethena, and Lido DAO. Additionally, Bitwise has filed for a Chainlink ETF, adding momentum to the interest in altcoins. One long-dormant whale even returned after three years, buying $28 million worth of ETH.
Avalanche Transactions Surge
While Ethereum and Bitcoin dominate headlines, Avalanche (AVAX) is showing rapid growth in activity. Nansen data reports that transactions on Avalanche increased by 66% in one week, totaling 11.9 million operations and surpassing 181,300 active addresses.
The U.S. government has begun publishing GDP data on-chain using Avalanche, alongside Bitcoin and Ethereum. At the same time, Grayscale updated its SEC filing for a spot Avalanche ETF, fueling institutional demand. Competing chains, such as Starknet (+37%) and Viction (+35%), also grew, but Avalanche pulled ahead. By total activity, Base remains in the lead with 64 million transactions in a week.
Conclusion
The recent crypto market crash has not slowed accumulation by major players. While Bitcoin price has become a profit-taking tool for many, Ethereum and large-cap altcoins are attracting stronger inflows. With whales rotating capital and corporate treasuries expanding holdings, Ethereum appears set for a recovery and possibly new highs.
