Ethereum Price Eyes $4,000 as Institutions Drive Recovery Momentum
Key highlights:
- The online performance-based marketing company, SharpLink, has recently accumulated another 18,680 ETH to boost its total holding to 498,711 ETH (worth approximately $1.81 billion).
- Another institutional address purchased 14,006 ETH ($50 million) from the exchange platform OSL.
- Since December 2021, the Ethereum price has witnessed a sideways action resonating within a symmetrical triangle pattern.
ETH, the native cryptocurrency of the Ethereum blockchain, witnessed a sharp rebound of over 10% in the last 48 hours to trade at $3,718. The sharp buying pressure can be attributed to active accumulation by high-net-worth investors and institutions, including SharpLink gaming. Amid the potential rebound, the Ethereum price is likely to re-challenge a multi-year resistance of a major sideways trend, signaling a potential shift in market trend. Is the $4,000 breakout close?
Institutional Investors Follow Buy-the-Dip
Since last week, the Ethereum price has showcased a brief pullback from a $3,940 to $3,355 low, projecting a 14.84% drop. This downswing aligns with the broader market sell-off as investors’ sentiment shifted to a post-rally correction.
However, the ETH price was quick to reclaim its lost ground as on-chain data highlights increasing accumulation from crypto-based corporate firms.
According to blockchain tracker Lookonchain, SharpLink Gaming received 18,680 ETH valued at $66.63 from Galaxy Digital through an over-the-counter (OTC) transaction.
Following MicroStrategy’s Bitcoin-centric mode, SharpLink Gaming significantly expanded its Ethereum holdings in early June. Currently, the firm holds a staggering 499,000 ETH at an average price of $3,064, which is estimated to be worth $1.8 billion and has an unrealized profit of $275 million.
Onchain Activity | Lookonchain
In addition, an institutional address has made a substantial purchase of $50 million worth of ETH through the crypto exchange platform OSL.
According to a recent tweet from EmberCN, the transaction trail reveals that the address withdrew $50 million from Bitget early today and transferred it to OSL. Just 15 minutes before the post, the address received 14,006 ETH, suggesting a purchase price close to 3,570 ETH.
The transactions above highlight a growing trend of institutional entities actively accumulating ETH amid a price pullback. This “buy-the-dip” sentiment is often observed during a strong uptrend, reflecting the confidence of major players in the asset’s continued recovery.
Ethereum Price Stands at a Pivot Level of Triangle Resistance
The daily chart analysis of Ethereum reveals that the recent price correction occurred at the resistance trendline of a symmetrical triangle pattern. Since November 2021, the coin price has been resonating within the two converging trendlines of the pattern, showcasing a long-accumulation trend in action.
The ETH price has bounced twice from the lower support and three times from the upper resistance, reinforcing the validity of the triangle pattern and its potential to shape the upcoming trend direction.
With an intraday gain of 5.14%, the top altcoin is likely to breach the immediate resistance of $3,725. If the buyers manage to reclaim this level, the price could re-challenge the triangle resistance at $3,900. A potential breakout from this barrier would signal a major change in market dynamics and bolster Ether for a new high above $4,868.
ETH/USTD – 1d Chart
On the contrary, if the coin witnesses an overhead supply at $3,725, the price could form a lower high swing in the current recovery trend. If materialized, the sellers could force another correction push and aim for a $3,000 breakdown.
Also Read: What Does Historical Trend Say About Solana Price Target in August
