BMNR Faces 90% Collapse – What It Means for Ethereum at $2K

The market has flipped back into risk-off mode, and major support levels are showing cracks. Ethereum's $2,000 zone is shaping up to be the next real test. ETH has logged three consecutive weeks of losses, down nearly 15%, and that crucial support level is looking precarious. A break here could open the door to something uglier.

That backdrop makes BitMine's [BMNR] recent update worth a closer look. As the chart shows, the largest Ethereum DAT has shed almost 90% from its $161 peak last year. Tom Lee's position has given back a significant chunk of unrealized gains too, with portfolio profits down nearly 43%. That still works out to roughly $8 billion in total profits at press time—not exactly pocket change, but the pullback is undeniable.

BitMine has accumulated over 5 million ETH in just one year, pushing total holdings to around $10 billion. That's roughly 4.5% of the total circulating supply—for context, that's the kind of position that makes whales nervous and retail traders jealous. The 90% BMNR haircut and the erosion in Lee's portfolio have market watchers questioning whether that 5% ETH target is still realistic.

Ethereum has been lagging Bitcoin on technicals, and ETH's relative strength remains under pressure. That raises the stakes for any recovery attempt. Every dip tests an asset's resilience, and with macro volatility still in play and FUD creeping into Ethereum's biggest holders, the setup looks fragile. The odds of avoiding deeper downside seem limited for now. Sentiment has weakened, which isn't helping investor confidence either.

But Santiment data tells a slightly different story. Wallets holding at least 100k ETH now collectively control 17.41 million ETH—the highest level in nine weeks. That puts their share at 22.03% of total supply, a 10-week high. In short, the FUD hasn't fully reached the top cohorts. For this Ethereum cycle, that's a notable divergence.

From a technical angle, ETH's $2k support hasn't fully broken yet, so a bounce remains possible. The recent BMNR-related FUD isn't entirely bearish either. ETH's pullback has inflicted real losses on the company, but whale conviction still appears intact. Accumulation trends continue supporting the broader structure—barely.