BitMine stock price continued its downtrend as Bitcoin and Ethereum dropped, a trend that may continue on Friday now that the crypto market crash is accelerating. BMNR dropped to $26.70, down by 83% from its highest level in July last year. This article explores why the stock may continue falling in the near term.

BitMine stock at risk as Ethereum price slips

Ethereum price crashed to a low of $2,683 on Friday, down sharply from the all-time high of $4,950. It continued the downtrend after it emerged that Kevin Warsh would become the next Federal Reserve Chair despite his past criticism of the crypto industry.

The daily timeframe chart shows that Ethereum price dropped to a low of $2,683, its lowest level since November 21st last year. It has moved below the 50-day and 100-day Exponential Moving Averages (EMA).

The coin has crashed below the 61.8% Fibonacci Retracement level at $2,743. It also moved below the Weak, Stop & Reverse level of the Murrey Math Lines tool.

Ethereum price has moved below the Supertrend and Ichimoku cloud indicators, a highly bearish sign in technical analysis. The Relative Strength Index (RSI) and the MACD indicators have continued falling in the past few months.

Therefore, the most likely scenario is where Ethereum continues falling, potentially to the next key support level at $2,500. A move below that level will point to more downside, potentially to the 78.6% Fibonacci Retracement level at $2,145.

ETH price chart | Source: TradingView 

BitMine stock price technicals points to more downside 

The daily timeframe chart shows that the BMNR stock price has crashed in the past few months, moving from a high of $160 in July last year to a low of $28.70.

The stock has remained below all moving averages and the Supertrend indicator. A closer look shows that the stock has formed a highly bearish descending triangle pattern.

The lower side of this pattern was at $25.50, while the upper side connects the highest swings since October last year. The two sides are nearing their confluence level.

Meanwhile, the stock has moved below the 50-day Exponential Moving Average (EMA) and the Supertrend indicator.

Therefore, the most likely scenario is where the stock makes a strong bearish breakdown, potentially to the key support level at $20.

BMNR stock chart | Source: TradingView 

BitMine’s long-term outlook is bullish 

The ongoing weakness in the BMNR stock price will be brief as the company has several bullish catalysts in the future.

Its main catalyst for the stock is that Ethereum has more upside in the long term. Data shows that Ethereum’s network is thriving, with the number of active addresses and transactions soaring. Its active addresses rose by 54% to over 14.7 million, while transactions rose by 40% to 67 million.

Ethereum active addresses | Source: Nansen

Ethereum is also a major player in the decentralized finance (DeFi) and Real-World Asset (RWA) tokenization industry, with its network being used by popular companies like JPMorgan and Janus Henderson.

BitMine will also become a major cash generator in the long term because of its staking solution. It now holds 4.3 million tokens, and its goal is to get to 6 million.  

Ethereum has a staking reward of 2.85%, meaning that its hoard will make 17,100 ETH tokens a year. At the current price, it means that the company will start making nearly $500 million a year.

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