Ethereum Price Dips Despite $1 Billion Treasury Initiative
Ethereum (ETH) experienced a 2% price drop on Friday, even with news circulating about a significant collaboration among Asian crypto investors. These investors are reportedly joining forces to launch a $1 billion ETH treasury, according to Bloomberg.
Major Crypto Backers in Asia Plan Massive Ethereum Treasury
Prominent figures in the Asian cryptocurrency space are reportedly moving forward with plans to establish a substantial Ethereum treasury. Li Lin, the founder of the Huobi exchange and chairman of Avenir Capital, is spearheading the effort, uniting with other investors to create a $1 billion ETH reserve.
The group reportedly includes Xiao Feng, CEO and chairman of HashKey Group, Shen Bo, co-founder of Fenbushi Capital, and Cai Wensheng, founder of Meitu Inc.
Sources familiar with the matter told Bloomberg that investors have already committed roughly $1 billion to the initiative. This includes a $500 million investment from institutional investors like HongShan Capital Group (formerly Sequoia China) and $200 million from Lin’s Avenir Capital.
An official announcement regarding the treasury’s launch is expected within the next two to three weeks. However, Bloomberg notes that discussions are ongoing, and the plan’s details could still be subject to change.
This move adds to the growing trend of digital asset treasuries focused on acquiring ETH as a reserve asset. Ethereum treasuries currently hold 3.6 million ETH, with BitMine Immersion (BMNR) leading the way with 1.7 million ETH. SharpLink Gaming follows with over 797,000 ETH, valued at approximately $3 billion.
As more companies shift towards Ethereum treasuries, some experts are predicting a potential bubble. BitMine’s president, Thomas Lee, has stated that the ‘bubble has burst’ in digital asset treasury companies, as many are trading below their net asset value.
Ethereum Price Forecast: $3,800 Support Tested
Ethereum saw $215.9 million in futures liquidations in the past 24 hours, with long liquidations accounting for $146.1 million.
ETH briefly fell below the key support level of $3,815, but buyers quickly pushed the price back up. However, the leading altcoin still faces pressure at this level, with a descending trendline providing resistance above.
Failure to hold $3,800 could send ETH towards support just below $3,500.
The Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) indicator are both below their neutral levels, suggesting prevailing bearish momentum.
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