5 min readBitcoin, along with other major cryptocurrencies, is edging higher after modest gains in US indices overnight. However, gains remain weak and the mood cautious as investors await further clarity from upcoming US data before committing to larger directional positions.
The recent US tech rout, which has dragged on BTC over the past month, appears to be slowing. US tech stocks steadied yesterday after steep losses. Investors had sold out of tech and, more specifically, the software sector, amid concerns about AI-driven disruptions. More broadly, concerns about large-scale AI investments and potential returns had led investors to exit tech. Bitcoin has been trading in lockstep with the software sector, so any signs that the rout is easing could offer support to BTC.
Attention is also on the Federal Reserve’s monetary policy outlook for further clues regarding the timing of the next Federal Reserve rate cut. The Federal Reserve left rates unchanged at the January meeting, and Fed Chair Powell noted that the labour market showed signs of stabilising while inflation remained above target. The market is pricing in 63 basis points worth of reductions this year. Hawkish-sounding minutes could lower rate-cut expectations, keeping BTC under 70k.
Ethereum rises as Bitmine accumulates & staking tightens supply
Ethereum is edging higher, tracking gains in Bitcoin, and is supported by the Ethereum treasury firm Bitmine, which continues its weekly purchases of ETH. The firm acquired 45,759 ETH last week, bringing the company’s holdings to 4.37 million ETH, valued at $8.67 billion, or 3.62% of ETH’s circulating supply. From that figure, the firm has also staked $3.04 million in ETH across three staking providers. BitMine’s cost basis is $ 3,800, implying unrealised losses of approximately $8 billion on its ETH assets.
Also supporting the Ethereum price are signs that Ethereum’s supply is steadily transitioning from liquid ownership to long-term network commitment.
Since early 2023, staking participation has increased from around 15% to 30%. This shift reflects ecosystem maturity and infrastructure participation. Deposits increased despite uneven price conditions, suggesting motives aligned with yield generation and protocol security. Locked-in supply tightens the market, supporting prices.
Sentiment toward ETH and the broader crypto market remains weak but is improving. The Fear and Greed and Greed Index remains in Extreme Fear but has recovered from record lows. Meanwhile, tentative signs of a recovery in institutional demand could also support ETH’s higher levels. ETH ETFs record two straight days of net inflows.
ETH technical analysis
ETH trades within a symmetrical triangle on the 4-hour chart. The price has recovered from the rising trendline support and is now above the 50 SMA. This, combined with the RSI above 50, keeps buyers hopeful of a breakout to the upside.
Should momentum continue, buyers will look to rise above 2070, the falling trendline resistance. A breakout above the triangle pattern brings 5150, last week’s high, into focus. Above here, bulls will look towards 2400, the February high, and 2500, the round number.
A break below 1965, the rising trendline support and confirmation with a break below 1900, the February 12 low opens the door to 1820 and 1740, the 2026 low.
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