- Ethereum is down over 12% for the week despite positive attention around BitMine’s preferred stock plan.
- BitMine may use proceeds to buy ETH, expand staking infrastructure, and support Ethereum ecosystem investments.
- ETH remains technically bearish while trading below key EMA resistance levels.
Ethereum continued to trade under pressure on Thursday, falling more than 1.7% over the past 24 hours and stretching its weekly decline to around 12%. The drop came even as BitMine Immersion Technologies drew positive attention from parts of the Ethereum community after announcing plans for a Series A Perpetual Preferred Stock offering. The company said it will offer 3 million shares at $100 each, with a cumulative 9.5% annual dividend paid weekly in cash if declared by its board.
The dividend structure also includes a compounding feature. If BitMine misses a weekly payment, the unpaid amount compounds by 0.05%, with the annual rate capped at 15% until fully paid. BitMine plans to list the preferred stock on the NYSE under the ticker BMNP, with trading expected to begin 30 days after the first issuance.
Why Ethereum Holders Are Watching BitMine
BitMine said proceeds may be used for general corporate purposes, including buying more ETH and other digital assets, expanding staking and validator infrastructure, supporting Ethereum-related investments, and repurchasing common stock. That makes the offering especially interesting because it resembles Strategy’s preferred stock model, but with a key difference. Unlike a Bitcoin-only treasury strategy, BitMine may be able to use Ethereum staking rewards as part of its funding base.
Some Ethereum supporters have argued that this gives ETH treasury firms a stronger dividend-paying structure than Bitcoin treasury firms. Strategy recently sold 32 BTC to support dividend payments, marking its first Bitcoin sale since 2022. That move added to risk-off sentiment, with Bitcoin briefly sliding below $62,000 and dragging the broader crypto market lower.
ETH Price Still Looks Heavy
Even with the BitMine news, Ethereum’s chart remains weak in the near term. ETH is still trading below its 20-day, 50-day, and 100-day EMAs, which are clustered between roughly $2,030 and $2,245. That keeps the broader short-term trend tilted bearish, even though momentum indicators are already stretched.
The RSI near 19 suggests ETH is deeply oversold, while the Stochastic around 15 also points to exhausted downside pressure. Still, oversold conditions do not automatically mean a trend reversal. Unless ETH can reclaim the major EMA zone, any bounce may remain corrective rather than the start of a stronger recovery.
Key Ethereum Levels To Watch
On the upside, ETH faces initial resistance near $1,806, followed by $1,909 and the stronger $2,019 to $2,027 zone. If buyers push above that area, the next major resistance band sits around the 50-day EMA near $2,133 and the $2,211 to $2,244 range. Higher targets would then sit near $2,389 and $2,746.
On the downside, immediate support is near $1,741. A break below that level could open the path toward $1,524 and then $1,405, even though momentum already looks heavily oversold. For now, Ethereum’s setup remains fragile, and BitMine’s treasury-focused plans may not be enough to shift market sentiment unless ETH price action starts confirming a stronger recovery.
