Ethereum Drops Below $2,200 as Bitmine Buys $126M ETH

• Bitmine aggressively accumulated Ethereum despite recent price weakness and broader market uncertainty.
• Analysts identified key liquidity zones that could drive Ethereum’s next major price movement.
• Developer activity remains strong despite criticism surrounding Ethereum Foundation leadership and project management.

Ethereum — ETH, has entered another difficult phase after dropping below major support levels during the recent market sell-off. The decline followed growing uncertainty after the SEC delayed decisions tied to tokenized stocks, which many investors viewed as a major growth catalyst for Ethereum’s ecosystem. Market sentiment weakened quickly as traders reacted to the news, pushing ETH below the important $2,200 level. Despite the downturn, several institutional investors continue treating the current correction as a buying opportunity rather than a reason to exit the market.

One of the strongest bullish signals continues coming from institutional accumulation. Tom Lee and Bitmine recently purchased another 60,000 ETH within a single day, according to blockchain analytics platform Onchain Lens. That purchase carried an estimated value near $126 million. Following the transaction, Bitmine’s total Ethereum holdings climbed above 5.33 million ETH, representing more than 4.3% of the entire circulating supply.

The aggressive accumulation did not begin recently. Earlier this week, Bitmine already added another $154 million worth of ETH to holdings. Lee publicly described Ethereum’s drop below $2,200 as an attractive long-term entry point. Such heavy buying during periods of fear often signals strong institutional confidence in future recovery potential. Instead of reducing exposure, Bitmine continues expanding holdings while prices remain under pressure. Another major factor supporting Ethereum involves staking rewards.

Bitmine currently stakes more than 4.7 million ETH across the network. Those staked assets reportedly generate annualized rewards close to $289 million. That revenue stream gives institutional investors another reason to accumulate Ethereum despite short-term volatility. Large firms increasingly view staking as a long-term income strategy alongside price appreciation. Several market analysts also highlighted important liquidity levels around Ethereum’s current range.

While institutional demand remains strong, Ethereum also faces growing criticism tied to leadership concerns surrounding the Ethereum Foundation. Analyst Papaxem recently discussed frustrations surrounding project management decisions and internal direction. Those concerns gained additional attention after Bankless revealed a shift away from ETH holdings toward Zcash. The announcement triggered intense debate across trading communities and social media platforms.

Despite those concerns, many analysts argue that Ethereum’s broader ecosystem remains healthy. Papaxem emphasized that independent developers and companies continue building regardless of Foundation leadership disputes. Blockchain software company ConsenSys and numerous developer teams still actively support network growth, decentralized applications, and infrastructure expansion across Ethereum’s ecosystem.

Another analyst, Rios, described Ethereum’s recent 19% decline as a healthy reset rather than a structural breakdown. According to Rios, weaker market positions may already have exited during the correction phase. Stable prices near current levels could eventually support stronger momentum during the next recovery cycle.