Key Takeaways:
- SharpLink Gaming establishes an ETH treasury, backed by Ethereum co-founder Joe Lubin, investing $425 million to acquire 120,000 ETH.
- Ethereum futures open interest reaches an all-time high of $36.1 billion, signaling increased trader activity.
- Technical analysis suggests a potential breakout pattern on Ethereum’s daily chart, targeting a price range of $3,000-$3,200.
SharpLink Gaming (SBET), a Nasdaq-listed company, has announced a significant move into the cryptocurrency space by establishing an Ethereum (ETH) treasury. This strategic decision involves a $425 million private investment in public equity (PIPE), acquiring approximately 69.1 million shares at $6.15 each, effectively creating the first Nasdaq-listed Ethereum treasury company.
This initiative is spearheaded by Ethereum co-founder Joe Lubin and draws parallels to MicroStrategy’s (MSTR) successful Bitcoin treasury strategy. MicroStrategy has leveraged stock and bond sales to acquire Bitcoin (BTC), realizing substantial gains. The goal of SharpLink is to replicate this success with Ethereum.
Expert Opinions:
- Eric Conner, former Ethereum core developer, highlights the bullish implications of SharpLink’s move. He suggests it could create a “public ETH proxy for funds that can’t hold tokens directly.” The acquisition of 120,000 ETH could also lead to “supply compression” as these tokens are likely to be staked. Conner also points to the potential for ETH to be positioned as a “digital reserve collateral,” driving its adoption through an equity wrapper like $SBET.
- VICTOR, a crypto analyst, cautions against excessive optimism, noting the risk of leveraging gains from an altcoin that is still down from its peak in 2025.
Ethereum Network Activity:
In Q1 2025, Ethereum network fees experienced a sharp decline, dropping from $2.5 million to $605,000 in just two weeks in March. This was accompanied by a decrease in decentralized app (DApp) activity. However, average daily fees on the Ethereum chain have remained above $1 million since May 9, 2025, although still lower compared to Q1 2024.
Ethereum Open Interest and Price Target:
The SharpLink announcement has spurred increased activity in the Ethereum futures market. Ethereum futures open interest (OI) has reached a new all-time high of $36.1 billion, increasing by $3.5 billion in just 24 hours. Over the past month, Ether OI has surged by 72%, reflecting significant interest from traders.
Ether prices have also seen a positive movement, climbing 4.50% on the day of the announcement. CryptoQuant community analyst Maartuun suggests the possibility of a leveraged-fueled pump for Ethereum.
Technical Analysis and Price Prediction:
Over the past 30 days, Ether prices have risen by 48%, with the markets showing several leverage-driven pump signals. Technical analysis of the daily chart indicates a descending triangle, which is generally considered a bullish breakout pattern. This pattern is characterized by equal highs and higher lows, converging towards a potential rally.
The pattern is defined by two trendlines: an upper resistance level around $2,700 and an ascending support line. A breakout above $2,677 could trigger a measured move, projecting a target range of $3,100-$3,200, aligning with previous resistance levels.
The relative strength index (RSI) at 68.50 further supports this bullish outlook. An RSI close to 70 indicates strong momentum, suggesting that Ethereum may be preparing for a new rally.
Anonymous crypto trader mo_xbt has also pointed out a “sandwich setup” for Ethereum, believing that a retest of $3,000 is likely. Mo_xbt noted the alignment of key moving averages, indicating a potentially positive trend.
Conclusion:
SharpLink Gaming’s significant investment in Ethereum, combined with positive technical indicators and market sentiment, has led to increased optimism regarding Ethereum’s price potential. While analysts caution against excessive exuberance, the overall outlook suggests that Ethereum may be poised for further gains, with a potential target range of $3,000 – $3,200. The development highlights the growing interest in Ethereum as a potential store of value and digital reserve asset.