Ethereum Struggles Below $3,700 Despite SharpLink Gaming’s 83,000 ETH Purchase
- Ethereum failed to hold $3,700 as support, with focus on $3,094 level.
- SharpLink’s 83,000 ETH purchase fails to lift Ethereum above $3,700 resistance.
- Ethereum faces a $465 million ETF outflow, with $3,094 support critical for future trends.
On Tuesday, Ethereum ( ETH ) could not resist the drawdown beyond the $3,700 level. It fell even as SharpLink Gaming (SBET) bought more than 83,000 ETH last week.
The corporate purchasing demand failed to lead to a greater price hike in ETH. Rather, the price action of the leading altcoin reflected a new record of outflow from US spot Ethereum ETFs amounting to almost half a billion ($465 million).
SharpLink Gaming, an esports-oriented marketing company, revealed that it bought 83,561 ETH last week. This made it increase the total supply of ETH to 521,939 on August 3. Following this acquisition, SharpLink dedicated an AGM total of $264.5 million to an at-the-market (ATM) facility.
SharpLink Boosts Ethereum Holdings with $425 million
Earlier in May, SharpLink adopted an ETH treasury model through a $425 million private placement. SharpLink has submitted an application to the Securities and Exchange Commission (SEC) to increase its ATM facility to $6 billion. This is meant to utilize this funding to swell its ETH holdings.
Also Read: Ethereum Whales Stack More ETH as Sharplink and Ether Machine lead Surge
The majority of the SharpLink holdings are staked, and the company stated that it has seen a growth in staking rewards. SharpLink has been operating the treasury since its June launch and gained 929 ETH in rewards.
The company is currently second in the leaderboard of the publicly traded companies with huge ETH treasuries. The leader is BitMine (BMNR) and is supported by Peter Thiel. BitMine presently owns more than 833,100 ETH. All in all, ETH treasury vehicles currently possess over 1.9 million ETH.
Despite these corporate efforts to accumulate ETH , there were significant withdrawals from Ethereum ETFs in the US. On Monday, the outflow from US spot Ethereum ETFs reached $465 million.
It was the highest ever outflow, as figures provided by SoSoValue. That occurred after 20 consecutive days of inflows, which ended last Friday, for a total of $5.3 billion. The culmination This inflow record occurred when President Donald Trump announced new reciprocal tariffs on other international trading partners.
Ethereum Faces Market Volatility and Key Support at $3,094
ETH experienced fluctuations in its futures market as well. The liquidation in the futures contracts amounted to $108 million in the last 24 hours.
Coinglass’s data shows that $74 million of these liquidations were long, while $34 million were synthetic liquidations. This brings out the uncertainty in the market as investors respond to unfolding events.
Source: Coinglass
After a rally of 6% at the beginning of the week, ETH was unable to continue the momentum at the deal of $3,700 on Tuesday. This altcoin currently seems to be changing direction toward the $3,470 mark.
But the price of ETH is above micro support, which is vital, according to analysts. As long as the Ethereum price remains at the price level of the $3,094, the upward price trend may persist.
Source: X
Ethereum experiences market volatility as it consistently struggles to maintain a level above $3,700, even in the face of corporate purchases. Price continues to stalk a critical level, as analysts will observe support at $3,094. The success of ETH in the future in terms of prices will depend on the ability of this coin to face the current adversity in the market and hold support levels.
Also Read: Ethereum Whales Scoop Up $142 Million in ETH As Price Eyes $3.7K Breakout
