⚠️ Ethereum at Risk — Key Support Disappears, Break of $2,100 Looms
On Friday, SharpLink Gaming, which is listed on Nasdaq, announced that it has purchased 176,270.69 ETH for $462.9 million, becoming the largest publicly traded holder of ETH in the world. The corporation bought ETH at an average of $2,626.
The transaction was financed by private placements and ATM stock issuances.
SharpLink committed almost 95% of its acquired ETH to generate yield and enhance the security and decentralization of Ethereum.
The acquisition followed SharpLink's filing with the SEC on Wednesday for the prospective sale of over 58 million shares after a $1 billion offering in May.
SharpLink's shares fell 66% on Friday despite the purchase of ETH.
Recent events in the cryptocurrency market have directly impacted the Ethereum ecosystem, leading to a shift towards an ETH treasury approach. Legislation on cryptocurrencies, asset tokenization, and SEC support for decentralized finance (DeFi) contribute to this transformation.
Chung said the SEC's current stance on DeFi may encourage institutions to use it. He stated that these changes are turning Ethereum into an "indispensable infrastructure," enabling on-chain financial services.
Ethereum has gone beyond 'crypto' [...] Industrial-grade programmable money systems. Ethereum is ahead, "said Chung.
Even if the announcement of the acquisition of Ethereum and SharpLink was well received, ETH has fallen on Friday due to concerns over the conflict in the Middle East.
Coinglass data shows $296 million in Ethereum futures liquidations, including $239.09 million and $57.77 million over the previous 24 hours.
ETH has fallen 12% since a rejection above the $2,850 resistance, momentarily dropping below $2,500 before finding support at the 38.2% Fibonacci retracement level near $2,450 on Friday.
The 50-day Simple Moving Average can support ETH around the lower limit of a crucial channel if it fails to maintain the $2,500 level and the 38.2% Fibonacci retracement level. A drop below this level will put its price between $2,110 and $2,260, with the 100-day SMA nearby below.
ETH needs to break the barrier of $2,850 to rise to $3,400.