Ethereum Price Forecast: ETH regains $3,000 following SharpLink acquisition and $383 million ETF inflows

Ethereum price today: $2,960

• SharpLink scoops 10,000 ETH from the Ethereum Foundation in an over-the-counter deal.
• Ethereum ETFs records their second-highest single-day net inflows worth $383.1 million on Thursday.
• ETH could stretch its rally by 17% toward $3,470 if it flips a key broadening wedge resistance.

Ethereum (ETH) briefly regained the $3,000 level on Friday following strong buying pressure from institutional investors via ETH exchange-traded funds (ETFs) and Nasdaq-listed SharpLink Gaming (SBET).

SharpLink buys ETH again, ETH ETFs record heavy inflows 

Ethereum treasury and esports marketing firm SharpLink Gaming disclosed it purchased 10,000 ETH for $25.72 million from the Ethereum Foundation (EF) in an over-the-counter (OTC) deal that closed on Thursday.

The purchase, which was made at $2,572 per ETH, pushed the company's holdings to 215,957 ETH, worth over $600 million based on current prices, according to data from the Strategic ETH Reserve website.

"This isn't a trade - it is a commitment to our long-term vision," said Joseph Lubin, SharpLink's Chairman and CEO of crypto infrastructure provider Consensys, in a press release on Thursday.

The Ethereum Foundation, the non-profit that stewards protocol development for the Ethereum ecosystem, stated that the OTC sale is to fund operations, ecosystem development, grants and other key activities.

Market participants viewed the deal as a means to mitigate immediate market impact, given that previous sales from the EF had frequently faced criticism for suppressing the top altcoin's price.

"Guess that's one way to fix EF dumping," wrote Alex Svanevik, CEO of crypto analytics firm Nansen, in an X post on Friday.

SharpLink went all-in on its ETH treasury strategy in June after launching a $425 million private placement spearheaded by Consensys. Since then, four other companies, including BitMine (BMNR), Bit Digital (BTBT), BTCS, and GameSquare, have launched ETH treasuries.

SharpLink's shares closed on Friday with a 17% gain, extending its weekly gains to 71%.

The development comes at a time when ETH is also seeing strong demand on the institutional front.

US spot ETH ETFs clocked their second-highest daily net inflows worth $383.1 million on Thursday, stretching their inflows streak to five consecutive days, totaling $851.73 million, according to SoSoValue data. As a result, ETH ETFs' cumulative net inflows have crossed above $5 billion, a few weeks to its first anniversary on July 23. Notably, BlackRock's iShares Ethereum Trust (ETHA) dominated the majority of the flows on Thursday, attracting over $300.93 million, its highest single-day inflow.

The products have proved instrumental in soaking up ETH supply since launching. Interestingly, ETH ETFs' cumulative net inflows over the past nine trading days have outpaced the total net ETH issuance since The Merge in September 2022, when Ethereum transitioned to a Proof-of-Stake consensus process.

Amid the rising prices, market participants are anticipating the upcoming Crypto Week slated for next week and its potential impact on Ethereum.

Ethereum Price Forecast: ETH eyes 17% rally if it flips key wedge resistance

Ethereum saw $256.49 million in futures liquidations in the past 24 hours, according to Coinglass data. The total amount of long and short liquidations is $62.36 million and $194.13 million, respectively.

After surging past the key resistance at $2,850, ETH briefly reclaimed the $3,000 psychological level but is facing resistance near the upper boundary of an ascending right-angled broadening wedge. If ETH can flip the resistance into support, it could stretch its rally by an extra 17% toward $3,470. However, it could face resistance near $3,220 on the way up.

ETH/USDT daily chart

On the downside, ETH has to hold the $2,850 level or risks a decline back toward the support near $2,500, which has proven to be a historically high demand zone where investors scooped over 3.45 million ETH, per Glassnode data.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are in their overbought regions, indicating dominant bullish momentum but with potential for a short-term pullback.

A daily candlestick close below $2,500 will invalidate the thesis and potentially send ETH toward $2,110 if the support at $2,400 fails.