Ethereum Price Target Shifts to $3K After SharpLink's Treasury Plans

Ethereum’s price outlook has gained fresh momentum following Nasdaq-listed SharpLink Gaming’s recent announcement of a $425 million private investment in public equity (PIPE). By acquiring roughly 69.1 million shares at $6.15 apiece, SharpLink is positioning itself as the first Nasdaq-listed Ethereum treasury company. This strategic move echoes the path pioneered by MicroStrategy’s Bitcoin treasury playbook, now being adapted for Ethereum’s evolving ecosystem.

What SharpLink’s Move Means for Ethereum?

SharpLink’s $425 million PIPE deal is more than just a capital raise—it offers a new way for institutions to get exposure to Ethereum. Led by Ethereum co-founder Joe Lubin, the company plans to create a publicly traded Ethereum proxy under the ticker $SBET. This strategy is similar to MicroStrategy’s Bitcoin treasury approach, where companies sell stock or bonds to buy and hold cryptocurrencies on their balance sheets.

Ethereum expert Eric Conner said this strategy could be transformative, allowing funds that can’t hold tokens directly to still gain ETH exposure. SharpLink’s purchase of 120,000 Ether—likely for staking—could reduce the circulating supply as these tokens become locked. This “supply compression” idea supports the view of ETH as a “digital reserve collateral,” which may help boost its acceptance among institutional investors.

Still, some remain cautious. Crypto analyst VICTOR warned against too much hype, pointing out that Ethereum’s price is down nearly 19% this year, showing continued volatility in altcoins. While SharpLink’s move shows confidence, many market watchers are staying alert given the uncertain crypto environment.

ETH Network Activity and Market Dynamics

Ethereum’s fundamentals present a mixed outlook. Earlier this year, a significant decline in network fees was reported. They fell from $2.5 million to just $605,000 within weeks, coinciding with reduced activity in decentralized applications (DApps). Since early May, daily fees have risen above $1 million but remain well below Q1 2024 levels, indicating that user engagement is recovering but has not yet returned to previous highs.

These trends are important because network usage often correlates with demand for ETH, which directly affects its price. Notably, the SharpLink announcement triggered a surge in activity within the Ethereum futures market. Open interest (OI) in Ether futures recently reached a record $36.1 billion, increasing by $3.5 billion in just 24 hours. Over the past month, Ether’s OI has risen 72%, reflecting heightened interest among traders.

At the time of writing, ETH is trading near $2,641, with a 24-hour volume of $21.15 billion—an increase of nearly 10%. Over the last 30 days, the price has gained 48%, though many of the rapid, leverage-driven rallies have faded, with only one resulting in a short squeeze and sustained gains. This pattern highlights the ongoing volatility of Ethereum in a market that is still searching for a clear direction.

Ethereum’s Technical Outlook

From a technical perspective, Ethereum appears poised for a potential bullish breakout. A descending triangle pattern—a setup often signaling a reversal—has been forming on the daily chart. This pattern shows consistent highs near $2,700 alongside rising lows, converging toward a breakout point. If ETH manages to break above the $2,677 resistance level, it could aim for $3,100 to $3,200, based on the triangle’s height added to the breakout price.

The relative strength index (RSI) currently stands at 68.50, indicating strong momentum just below overbought levels. The recent RSI decline from above 70 suggests the asset is pausing before potentially resuming its upward movement.

Additionally, the anonymous crypto trader mo_xbt pointed out a “sandwich setup” on the daily chart, where price is trading between key moving averages (1d 200 EMA, 1d 200 MA, and 300 MA). According to mo_xbt, this pattern has consistently preceded rallies in recent weeks, making a retest of $3,000 seem likely.

Together, chart signals, increased volume, and trader sentiment create a convincing technical picture, but investors should remain cautious as crypto markets are prone to sudden moves driven by news or broader economic factors.

Ethereum’s Future Outlook

SharpLink’s launch as the first Nasdaq-listed company holding an Ethereum treasury marks an important step for ETH’s acceptance by institutional investors. By giving exposure through public equity, it may help bring Ethereum closer to mainstream financial markets and encourage wider adoption among cautious investors.

At the same time, Ethereum’s price and activity show a market with promise but also some uncertainty. Challenges like limited supply and price swings remain. While there are signs it could rise toward $3,000, investors should be careful because changes in mood or outside events could quickly change things.