Ethereum has seen some sideways movement this week, helping the altcoin break out of a nearly three-week-long downtrend. Despite facing bearish cues, including whale selling, Ethereum’s price has managed to hold steady.
This stability is raising expectations of an upcoming breakout, potentially setting the stage for a rise.
Ethereum Whales Move To Sell
Whale addresses are exhibiting bearish sentiment at the moment, as several large holders have started to liquidate their positions.
In the last 48 hours, addresses holding between 1 million and 10 million ETH sold over 1.06 million ETH worth approximately $2.57 billion.
Whale selling typically exerts downward pressure on the price, signaling potential bearishness. However, in this case, Ethereum’s price has continued to sustain itself, which indicates market resilience.
Looking at Ethereum’s macro momentum, the IOMAP (In/Out of the Money Around Price) chart reveals a significant demand zone for ETH. The zone holds 65.83 million ETH, valued at over $159 billion.
These holdings were bought between the $2,349 and $2,421 range, establishing a strong support area.
The large number of investors who purchased ETH in this price range are unlikely to sell at break-even or loss, making it difficult for the price to fall below this key support.
This demand zone acts as a solid cushion for Ethereum’s price, protecting it from any sharp declines. The support from these investors provides a foundation for Ethereum’s price to remain stable despite the recent selling pressure.
As a result, the price is less likely to drop sharply below the $2,344 mark, which would otherwise signify a more significant bearish trend.
Ethereum’s price is currently trading at $2,424, just under the critical resistance of $2,476.
While there has been no significant rise, the sideways movement has allowed ETH to break out of the three-week downtrend. This consolidation phase is setting the stage for potential upward momentum.
The factors discussed earlier indicate that Ethereum may continue to consolidate between $2,344 and $2,476 or potentially break through the resistance.
If Ethereum successfully flips $2,476 into support, a rise to $2,606 is likely. This would mark a significant breakout and could attract more buyers into the market.
On the other hand, if broader market conditions turn extremely bearish, similar to last week’s sentiment, Ethereum’s price could slip below $2,344 and fall to $2,205.
A drop below this support would invalidate the current bullish thesis, potentially signaling a further decline.
Immutable’s utility token, IMX, is today’s top-performing altcoin, climbing nearly 15% over the past 24 hours. As of this writing, the altcoin trades at $0.64.
On-chain data points to a resurgence in bullish sentiment, suggesting that the rally may have legs in the short term. This analysis explains how.
IMX Traders Go Long and Network Activity Supports the Climb
IMX’s long/short ratio has risen above 1, indicating that many market participants are opening long positions in anticipation of continued upside. According to Coinglass, this currently stands at 1.004.
The long/short ratio measures the proportion of bullish (long) positions to bearish (short) positions in the market. When the ratio is below one, more traders are betting on a price decline than on a price increase.
Converesly, as with IMX, a ratio above one means there are more long positions than short ones. This suggests bullish sentiment, with most traders expecting the asset’s value to rise.
IMX’s price daily active address (DAA) divergence, which remains positive, further strengthens the bullish case. This metric, which measures an asset’s price movements with the changes in its number of daily active addresses, is currently at 63.22%.
When an asset’s price rally is accompanied by a positive DAA divergence, it is considered a bullish signal, suggesting growing interest and the potential for further price appreciation.
This reflects that IMX’s recent price hike is supported by sufficient user activity on the network rather than driven solely by speculative trading.
IMX Price Outlook Strengthens
On the daily chart, the setup of IMX’s Moving Average Convergence Divergence (MACD) supports the bullish outlook above. At press time, IMX’s MACD line (blue) rests above its signal (orange) and zero lines.
An asset’s MACD indicator identifies trends and momentum in its price movement. It helps traders spot potential buy or sell signals through crossovers between the MACD and signal lines.
When the MACD line is above the signal line, buying activity dominates the market, hinting at further price rallies. If this holds for IMX and the token maintains its uptrend, it could break above the resistance at $0.73 and climb to $0.79.
Corporate Bitcoin adoption continues its proliferation as more companies pursue accumulation strategies for their treasuries. Firms can benefit from capital appreciation, diversification, and an inflation hedge if executed properly.
However, not all Bitcoin acquisition strategies are created equal. If a company’s sole purpose is to hold BTC without sufficient resources or scale, it can risk total collapse during extended bear market periods. A chain reaction could further amplify downward pressure that could prove catastrophic.
Varying Approaches to Corporate Bitcoin Holdings
Institutional Bitcoin adoption is rising worldwide, with Bitcoin Treasuries data indicating that holdings have doubled since 2024. Public companies now collectively own over 4% of the total Bitcoin supply.
Interestingly, this increase in volume also represents a broadening range of reasons for doing so.
Some companies, most notably Strategy (formerly MicroStrategy), intentionally pursue such a playbook to become a Bitcoin treasury holding company. The move worked well for Strategy, whose supply accounts for 53% of total company holdings with over 580,000 BTC.
Other firms, like GameStop or PublicSquare, have taken a different approach, prioritizing exposure over aggressive accumulation. This scenario is optimal for firms that simply want to add BTC to their balance sheets while continuing to focus on their core businesses.
Initiatives like this carry far less risk than companies whose core business solely holds Bitcoin.
However, the increasing trend of companies adding Bitcoin to their financial reserves solely to dedicate themselves to holding Bitcoin carries profound implications for their businesses and Bitcoin’s future.
How Do Bitcoin-Focused Companies Attract Investors?
Building a successful Bitcoin treasury holding company involves much more than just aggressively buying Bitcoin. When a business’s sole purpose becomes Bitcoin holding, it will be exclusively valued based on the Bitcoin it holds.
To attract investors to buy their stock rather than just holding Bitcoin directly, these companies must outperform Bitcoin itself, reaching a premium known as Multiple on Net Asset Value (MNAV).
In other words, they must convince the market that their stock is worth more than the sum of its Bitcoin holdings.
Strategy implements this, for example, by convincing investors that by buying MSTR stock, they aren’t just purchasing a fixed amount of Bitcoin. Instead, they’re investing in a strategy where management actively works to increase the amount of Bitcoin attributed to each share.
If investors believe MicroStrategy can consistently grow its Bitcoin per share, they will pay a premium for that dual ability.
However, that’s just one part of the equation. If investors buy into that promise, Strategy has to deliver by raising capital to buy more Bitcoin.
The MNAV Premium: How It’s Built, How It Breaks
A company can only deliver an MNAV premium if it increases the total amount of Bitcoin it holds. Strategy does this by issuing convertible debt, which allows it to borrow funds at low interest rates.
It also leverages At-The-Market (ATM) equity offerings by selling new shares when their stock trades at a premium to its underlying Bitcoin value. Such a move enables Strategy to acquire more Bitcoin per dollar raised than existing shares, increasing Bitcoin per share for current holders.
This self-reinforcing cycle—where a premium allows efficient capital raises, which fund more Bitcoin, strengthening the narrative—helps sustain the elevated stock valuation beyond Strategy’s direct Bitcoin holdings.
However, such a process involves several risks. For many companies, the model is directly unsustainable. Even a pioneer like Strategy endured heightened stress when Bitcoin’s price dropped.
Nonetheless, over 60 companies have already adopted a Bitcoin-accumulating playbook during the first half of 2025. As that number grows, new treasury companies will face the associated risks even more acutely.
Aggressive BTC Accumulation Risks for Small Players
Unlike Strategy, most companies lack scale, an established reputation, and the “guru status” of a leader like Michael Saylor. These characteristics are crucial for attracting and retaining the investor confidence needed for a premium.
They also don’t generally have the same creditworthiness or market power. Knowing this, smaller players will likely incur higher interest rates on their debt and face more restrictive covenants, making the debt more expensive and harder to manage.
If their debt is collateralized by Bitcoin in a bear market, a price drop can quickly trigger margin calls. During an extended period of downward pressure, refinancing maturing debt becomes extremely difficult and costly for already overburdened companies.
To make matters worse, if these companies have shifted their core operations to focus solely on Bitcoin acquisition, they have no alternative business cushion that generates a stable and separate cash flow. They become entirely dependent on capital raises and Bitcoin’s price appreciation.
When several companies take such a move simultaneously, the consequences for the greater market can go south dramatically.
Does Corporate Bitcoin Adoption Risk a “Death Spiral”?
If many smaller firms pursue a Bitcoin accumulation strategy, the market consequences during a downturn can be severe. If Bitcoin’s price falls, these companies may run out of options and be forced to sell their holdings.
This widespread, distressed selling would inject an enormous supply into the market, significantly amplifying downward pressure. As seen during the 2022 crypto winter, such events can trigger a “reflexive death spiral.”
The different stages of a Bitcoin death spiral. Source: Breed VC.
The forced selling by one distressed company can further drive Bitcoin’s price down, triggering forced liquidations for other firms in a similar position. Such a negative feedback loop can provoke an accelerated market decline.
In turn, highly publicized failures could damage broader investor confidence. This “risk-off” sentiment could lead to widespread selling across other cryptocurrencies due to market correlations and a general flight to safety.
Such a move would also inevitably put regulators on high alert and spook off investors who may have considered investing in Bitcoin at one point.
Beyond Strategy: The Risks of Going “All-In” on Bitcoin
Strategy’s position as a Bitcoin treasury holding company is unique because it was a first mover. Only a handful of companies match Saylor’s resources, market influence, and competitive advantage.
The risks associated with such a playbook are various and, if proliferated, can be detrimental to the greater market. As more public companies move to add Bitcoin to their balance sheets, they must carefully decide between getting some exposure or going all-in.
If they choose the latter, they must cautiously and thoroughly weigh the consequences. Though Bitcoin is currently at all-time highs, a bear market is never entirely out of the question.
