Ethereum Price Surges Amid Institutional Interest and Strategic Acquisitions
Ethereum (ETH) briefly surpassed the $3,000 mark on Friday, fueled by significant buying pressure from institutional investors through Ethereum ETFs and a strategic acquisition by Nasdaq-listed SharpLink Gaming (SBET).
SharpLink’s ETH Acquisition and ETF Inflows Boost Ethereum
SharpLink Gaming, a marketing firm focused on Ethereum treasury and esports, announced the purchase of 10,000 ETH for $25.72 million from the Ethereum Foundation (EF) in an over-the-counter (OTC) deal finalized on Thursday.
The acquisition, executed at $2,572 per ETH, increases the company’s holdings to 215,957 ETH, valued at over $600 million, according to Strategic ETH Reserve data.
“This is not a trade, it’s a commitment to our long-term vision,” stated Joseph Lubin, SharpLink’s chairman and CEO of crypto infrastructure provider Consensys.
The Ethereum Foundation stated that the OTC sale is intended to fund operations, ecosystem development, grants, and other key activities.
Market participants viewed the deal as a way to mitigate immediate market impact, as previous EF sales had faced criticism for suppressing the price of the leading altcoin.
Alex Svanevik, CEO of crypto analytics firm Nansen, commented on social media, “I guess that’s one way to solve the EF selling problem.”
SharpLink fully committed to its ETH treasury strategy in June after launching a $425 million private placement led by Consensys. Since then, other companies, including BitMine (BMNR), Bit Digital (BTBT), BTCS, and GameSquare, have launched ETH treasuries.
SharpLink’s stock closed Friday with a 17% gain, extending its weekly gains to 71%.
This development coincides with strong institutional demand for ETH.
Spot ETH ETFs recorded their second-highest daily net inflows, totaling $383.1 million on Thursday, extending their inflow streak to five consecutive days, totaling $851.73 million, according to SoSoValue data. The cumulative net inflows of ETH ETFs have surpassed $5 billion, weeks before their first anniversary on July 23. BlackRock’s iShares Ethereum Trust (ETHA) dominated inflows on Thursday, attracting over $300.93 million, its largest single-day inflow.
ETFs have proven crucial in absorbing ETH supply since their launch. The cumulative net inflows of ETH ETFs in the last nine trading days have exceeded the total net ETH issuance since the Merge in September 2022, when Ethereum transitioned to a Proof-of-Stake consensus mechanism.
Market participants are anticipating the upcoming Crypto Week and its potential impact on Ethereum.
Ethereum Price Forecast: Potential 17% Rally if Resistance is Broken
Ethereum saw $256.49 million in futures liquidations in the last 24 hours, according to Coinglass data. Total long and short liquidations amounted to $62.36 million and $194.13 million, respectively.
After surpassing key resistance at $2,850, ETH briefly reclaimed the $3,000 level but faces resistance near the upper limit of an ascending right-angled broadening wedge. If ETH can turn resistance into support, it could extend its rally by 17% towards $3,470. However, it may encounter resistance near $3,220 along the way.
ETH must maintain the $2,850 level or risk a decline back towards support near $2,500, which has historically been a high-demand zone where investors acquired over 3.45 million ETH, according to Glassnode data.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are in overbought regions, indicating dominant bullish momentum but with the potential for a short-term pullback.
A daily candle close below $2,500 would invalidate the thesis and could send ETH towards $2,110 if support at $2,400 fails.
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