Ethereum Surges: $25.7M Buy and $383M ETF Inflow Signal 17% Upside
Ethereum (ETH) briefly hit $3,000 on Friday as institutional investors and Nasdaq listed SharpLink Gaming made aggressive buys.
Quick overview
- Ethereum (ETH) briefly reached $3,000 due to significant purchases by institutional investors, including SharpLink Gaming's $25.72 million acquisition of 10,000 ETH.
- SharpLink's total ETH reserves now exceed 215,957 ETH, valued at over $600 million, following a strategic pivot towards Ethereum-focused asset management.
- US-based spot Ethereum ETFs experienced substantial inflows, totaling $851.73 million for the week, indicating strong institutional demand and reducing market supply.
- Technical analysis suggests a potential 17% upside for ETH if it maintains support above $2,850, despite facing some resistance levels.
Ethereum (ETH) briefly hit $3,000 on Friday as institutional investors and Nasdaq listed SharpLink Gaming made aggressive buys. The company announced a $25.72 million over-the-counter (OTC) purchase of 10,000 ETH from the Ethereum Foundation (EF) at $2,572 per ETH.
This latest purchase brings SharpLink’s ETH reserves to 215,957 ETH or over $600 million making them one of the most ETH heavy corporate treasuries. This follows a $425 million private placement in June which triggered SharpLink’s pivot towards Ethereum focused asset management. The stock rose 17% on Friday capping a 71% weekly gain.
The Ethereum Foundation said the sale proceeds will go towards ecosystem funding, operations and grant allocations and chose OTC to avoid market disruption. This is seen as a fix to the criticism around foundation driven price drops.
“This isn’t a trade – it’s a long term commitment” said Joseph Lubin, CEO of Consensys and SharpLink Chairman.
ETH ETFs Absorb Supply As It Rises
Institutional interest didn’t stop with SharpLink. US based spot Ethereum ETFs saw their second highest daily inflows on Thursday at $383.1 million according to SoSoValue. This is the fifth straight day of inflows and $851.73 million for the week.
Key Points:
- Total ETH ETF inflows: Over $5 billion since launch.
- Top performer: BlackRock’s iShares Ethereum Trust (ETHA) saw $300.93 million inflows on Thursday.
- ETF impact: Absorbed more ETH than issued since The Merge in Sept 2022.
The ETF inflows, especially from big players like BlackRock, is a sign of Ethereum’s institutional demand and reduces supply in the market – pushing prices up.
ETH Technical Suggests 17% Upside
Ethereum’s brief move above $3,000 faces technical challenges but has bullish momentum. After breaking above $2,850 it’s testing the top of an ascending broadening wedge.If it breaks this resistance as support, analysts expect a 17% move to $3,470 but $3,220 could be a short term hurdle.
Risk levels to watch:
- Immediate support: $2,850
- Demand zone: $2,500 (3.45M ETH bought here historically)
- Invalidation zone: Below $2,500, down to $2,110
RSI and Stochastic Oscillator are overbought but momentum is still bullish so ETH’s short term is cautiously optimistic.
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