Ethereum Cost Basis Comes Into Focus Amid Slowing ETF, Treasury Investments

Investor focus is shifting Ethereum In the ongoing crypto market slump, it is on a holder’s cost basis, and experts are split on whether the market corrections can be maintained at its broken level if it continues.

Driven by macroeconomic uncertainty and industry-specific headwinds; Bitcoin The company began a steady decline in mid-August, putting pressure on the wider crypto market outlook.

As a result, Ethereum prices For each Coingecko data, ETH is currently slamming 10%, and ETH is currently trading around $4,000.

Currently, all eyes are at realised prices for storing Ethereum addresses.

The metrics surged significantly from $1,700 to $2,900 between June and September, consistent with Bitmine’s pivot announcement to Ethereum financial strategy in May, and the rise at US Spot Ethereum Exchange-Traded Fund Inflows at Ethereum Exchange-Traded Fund Inflows, CryptoQuant data shows.

Since then, according to Coingecko data, Bitmine has accumulated $10 billion worth of Ethereum, adding 264,378 ETH on September 22nd to 264,378 ETH, adding 264,378 ETH to 2.14 million ETH.

Despite Bitmine’s recent purchase, users of Myriad, a forecast market platform launched by Decrypt’s parent company Dastan, cast a 57% chance of holdings by the Treasury of less than 3 million ETH until October 27th.

Ethereum’s $3,000 “Structural Support”

Following Bitmine’s pivot, Ethereum ETF’s net flow acquired steam, increasing its net worth from $9.37 billion to $27.42 billion over the same period, according to SoSoValue.

The confluence of businesses and ETF purchases has created a flow-driven support level that solidifies $3,000 as a vital price range for Ethereum, experts say. Decryption.

“At the moment, $3,000 is structural support,” Buyucoin CEO Shivam Thakral told Decrypt, repeating the impact of these influxes.

Gracy Chen, CEO of Universal Exchange Bitget, agreed. “The dramatic expansion of Ethereum prices under $3,000 proves that it has become a “strong level of psychological support” driven by the institutional flow,” Chen said. Decryption.

Each followed a bearish sentiment, with countless users reaching $3,500 instead of $5,000 at the price of Ethereum.

Cryptocooling demand

Macroeconomic uncertainty and the renewed US dollar strength have cooled the institutional demand for cryptocurrencies, Decryption It was reported previously.

The US Spot Ethereum ETF recorded a negative net flow for three consecutive days, with a consistent decline in daily ETF net flow since its peak of $1.02 billion on August 11.

It is difficult for companies to raise cash to purchase ETH, as the net asset value (MNAV) is one or closer from the market of Ethereum Treasury Companies. Decryption It was reported previously.

As a result, Bitmine is the only finance company to accumulate Ethereum this week, highlighting its lack of appetite.

Despite the short-term headwinds, Chen remains optimistic about Ethereum’s long-term outlook, suggesting that another interest rate cut could ease the dollar’s recovery and rekindle the bull run in the broader crypto market.