Analysis: ETH Bearish Pattern Points to $1,600, BitMine's Unrealized Loss May Exceed $10 Billion

Odaily reported that as Ethereum continues to weaken, the unrealized loss on the 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 also dropped from about 15% to around 10%.

BitMine initiated its ETH reserve strategy in July 2025 and has been continuously accumulating positions after completing a $250 million private placement. The latest data indicates that it currently holds approximately 5.28 million ETH, accounting for roughly 4.37% of Ethereum's total supply, making it the largest publicly listed ETH reserve company globally.

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

However, technical risks are still intensifying. Analysts point out that ETH is currently trading near the lower boundary of a classic "rising wedge" bearish pattern. If the support level is effectively broken, the price could further decline to the $1,600 area, representing a potential drop of about 25% from current levels. If this scenario occurs, based on BitMine's average cost of approximately $3,513 per ETH, the unrealized loss on its ETH holdings could expand to around $10.1 billion.

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