Ethereum Price Surges to $3,540 Amidst Institutional and Corporate Interest
Ethereum (ETH) is on a roll, currently trading around $3,540. This surge is fueled by significant developments, including increased ETH holdings by companies and substantial inflows into Ethereum ETFs.
- Bit Digital has expanded its ETH reserve to over 120,000 ETH.
- Ethereum ETFs are poised for their largest weekly inflows, attracting over $1.78 billion in the last four days.
- ETH is approaching the key $4,000 level after breaking through $3,600.
The cryptocurrency continued its upward trajectory, surpassing $3,600 as Bit Digital (BTBT), a former Bitcoin miner, increased its holdings to 120,000 ETH. Simultaneously, U.S. spot ETH ETFs are on track to record their highest weekly inflows, having received over $1.78 billion in the past four days.
Bit Digital Expands ETH Treasury, ETH ETFs Set for Record Weekly Inflows
Bit Digital, a Nasdaq-listed company, announced the purchase of 19,683 ETH using proceeds from a recent $67.3 million direct offering. This acquisition brings the company’s total reserve to 120,306 ETH.
The company shifted its focus from Bitcoin mining to accumulating Ether earlier this month, following a $172 million raise from a public offering and the sale of 280 BTC.
Several publicly traded companies have recently established ETH treasuries, aiming to increase ETH per share for shareholders. SharpLink Gaming, already holding over 300,000 ETH, has outlined plans to further scale its holdings by an additional $5 billion through its At-The-Market (ATM) facility.
This growing trend of ETH treasury accumulation coincides with strong inflows into U.S. spot ETH ETFs, which are on pace to register record weekly inflows. These products received $602 million on Thursday, surpassing their BTC ETF counterparts and extending the week-to-date inflows to $1.78 billion. This figure more than doubles the previous weekly record of $854.85 million. BlackRock’s iShares Ethereum Trust (ETHA) has accounted for over 75% of these inflows, according to SoSoValue data.
Ethereum is also benefiting from the positive sentiment surrounding the recent Clarifying Lawful Digital Assets Act (CLADA), which has passed the house. The Layer 1 blockchain represents approximately 50% of the $260 billion global stablecoin market, according to DefiLlama.
Ethereum Price Forecast: ETH Climbs Above $3,600, Eyes $4,000 Target
Ethereum has seen $267.31 million in futures liquidations in the last 24 hours, comprising $146.88 million in long liquidations and $120.43 million in short liquidations, according to Coinglass data.
ETH has broken through several key resistance levels in the past week, rising over 20% above $3,600. The leading altcoin is now targeting the $4,000 resistance level to complete a bullish flag pattern that originated on May 8. A move above this resistance could propel ETH towards its all-time high of $4,878, reached in November 2021.
On the downside, ETH could find support at key levels, including $3,220, an ascending trendline near $3,100, and the critical $2,850 level.
The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) have been in overbought territory for over a week, indicating strong bullish momentum. However, these overbought conditions also increase the likelihood of a pullback.
A daily candlestick close below $2,850 would invalidate the bullish thesis and could send ETH towards $2,500.
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