Bitmine Immersion Technologies Inc. (BMNR) shares took a hit Friday as Ethereum (ETH) continued its afternoon slide, highlighting how crypto stocks remain tethered to the volatile digital asset markets.

Crypto Takes a Backseat to Shiny Objects

Ethereum dropped 6% Friday to $2,743.53, while Bitcoin (BTC) hovered around $83,195.06. The selling pressure comes as precious metals steal the spotlight—gold and silver have surged 18% and 52% year-to-date, respectively, creating what some are calling a "vortex" that's pulling investor attention away from crypto and AI themes.

Fundstrat's Tom Lee jumped into the conversation, urging investors to resist the fear of missing out that might push them away from Ethereum. "Own what works. But don't let FOMO make you abandon good ideas," Lee stated, according to a report on Thursday.

Why Metals Are Draining Crypto Momentum

Lee's explanation gets to the heart of the problem: traders are tying up capital in gold and silver momentum plays, with gold crossing $5,000 and silver hitting $110. That money has to come from somewhere, and crypto appears to be the source.

Making matters worse, Lee noted that October's crypto crash "crippled many of the key players in industry, some exchanges and market makers." The result? Crypto markets are operating without the leverage that typically amplifies rallies when sentiment turns positive.

What the Charts Say

The technical picture for BitMine isn't particularly encouraging. The stock is trading 13.6% below its 20-day simple moving average and a substantial 36% below its 100-day SMA, signaling a bearish trend. Shares are positioned closer to their 52-week lows than highs, reflecting a significant retreat from earlier peaks.

That said, context matters—BMNR shares have still rocketed 298.90% over the past 12 months, so current weakness follows a massive run-up.

The RSI sits at 39.48, which is neutral territory, while the MACD remains below its signal line, indicating bearish pressure. The combination suggests mixed momentum, with the stock caught between competing forces as investors weigh crypto's prospects against the precious metals rally.

BMNR Price Action: BitMine Immersion shares were down 4.02% at $25.62 at the time of publication on Friday.