Analysis: ETH bearish pattern points to $1,600, while BitMine's unrealized losses may exceed $10 billion

Odaily News As Ethereum continues to weaken, the unrealized book loss on ETH reserves held by Tom Lee's BitMine has expanded to approximately $7.35 billion. Data shows that ETH has fallen over 57% from its peak of around $4,955 in October 2025, and its market dominance (ETH Dominance) has declined from roughly 15% to about 10%.

BitMine initiated its ETH reserve strategy in July 2025, steadily increasing its holdings after completing a $250 million private placement. According to the latest data, the company currently holds approximately 5.28 million ETH, representing about 4.37% of Ethereum's total supply, making it the world's largest publicly traded ETH reserve company.

Despite the growing unrealized losses, Tom Lee remains committed to a long-term accumulation strategy. BitMine has stated it will moderately slow down the pace of its purchases but will not abandon its ETH reserve plan, aiming to hold 5% of Ethereum's total supply by December of this year.

However, technical risks continue to escalate. Analysis indicates that ETH is currently trading near the lower boundary of a classic bearish "rising wedge" pattern. If the support level is effectively broken, the price could potentially drop further towards the $1,600 range, representing a decline of approximately 25% from current levels. If this scenario materializes, based on BitMine's average holding cost of around $3,513, the unrealized loss on its ETH holdings could expand to roughly $10.1 billion.

Meanwhile, market sentiment continues to deteriorate. On-chain data platform Santiment shows that the ratio of bullish to bearish comments on social media regarding ETH has rapidly declined from over 2:1 at the end of April to nearly 1:1. Analysts suggest that an increasing number of traders are beginning to view ETH as "Dead Money" (an asset lacking upward momentum). (Cointelegraph)