⚠️ Ethereum at Risk — Key Support Fades, $2,100 Breakdown Looms
On Friday, Nasdaq-listed SharpLink Gaming announced that it has bought 176,270.69 ETH for $462.9 million, making it the world's biggest publicly traded ETH holder. The corporation bought ETH for $2,626 on average.
The transaction was funded by private placements and ATM stock issues.
SharpLink committed almost 95% of its acquired ETH to generate yield and improve Ethereum's security and decentralization.
The acquisition followed SharpLink's Wednesday SEC filing for the prospective selling of over 58 million shares following a $1 billion offering in May.
SharpLink's shares fell 66% Friday despite buying ETH.
Recent cryptocurrency market events have directly affected the Ethereum ecosystem, prompting the switch to an ETH treasury approach. Crypto legislation, asset tokenization, and the SEC's support for decentralized finance (DeFi) all contribute to this transformation.
Chung said that the SEC's current DeFi position may encourage institutions to use it. He said these changes are making Ethereum a "indispensable infrastructure," enabling on-chain financial services.
Ethereum has moved beyond 'crypto' [...] Industrial-grade, programmable money systems. Ethereum is ahead "Chung said.
Even if Ethereum and SharpLink's acquisition announcement went well, ETH is down on Friday due to Middle East conflict worries.
Coinglass data shows $296 million in Ethereum futures liquidations, including $239.09 million and $57.77 million during the previous 24 hours.
ETH has fallen 12% from a rejection above $2,850 resistance, momentarily falling below $2,500 before finding support at the 38.2% Fibonacci retracement level near $2,450 on Friday.
The 50-day Simple Moving Average may support ETH around the bottom limit of a crucial channel if it fails to hold the $2,500 and 38.2% Fib retracement level. A drop below this level will put its price between $2,110 and $2,260, with the 100-day SMA close below it.
ETH must break $2,850 barrier to rise to $3,400.
