Key Points:
SharpLink Gaming's purchase of ETH as a reserve asset has boosted investor confidence and paved the way for a potential surge to $3,153.
The price of Ether (ETH) has entered a strong upward channel this week, prompting many analysts to predict a breakthrough of the $3,000 mark by the end of July. These trading experts point out that the increase in spot ETH ETF inflows and several companies announcing their purchase of Ethereum as a reserve asset are the main driving factors behind the recent bullish momentum.
SharpLink Gaming stated that the company accumulated 7,689 Ether (ETH) from June 28 to July 4, with an average cost of $2,501. This purchase has increased the sports betting company's Ether holdings to 205,634, with a total value exceeding $533 million.
Will the price of ETH continue to rise due to the expectation of more companies adopting Ethereum reserve strategies? Let's look for answers through technical chart analysis.
ETH surged strongly on Wednesday, breaking through the stubborn resistance level of $2,738, indicating that bullish investors are actively entering the market.
The 20-day Exponential Moving Average (EMA) ($2,561) has begun to turn upward, and the Relative Strength Index (RSI) is in the positive zone, suggesting that buyers have gained market advantage. Sellers are expected to strongly defend the key level of $2,879, but if the bulls succeed in breaking through, the ETH/USDT trading pair could accelerate its rise to $3,153, followed by a challenge at $3,400.
However, sellers may have other plans. They will attempt to pull the price back below $2,738. If successful, the trading pair may retreat to the 20-day EMA, which is a key support level to watch closely. If the price effectively rebounds at the 20-day EMA, the bulls will try again to push the price above $2,879.
On the other hand, if it falls below the 20-day EMA, it suggests that the trading pair may continue to consolidate within the range of $2,111 to $2,879 for some time.
The trading pair's breakthrough above $2,800 has pushed the RSI into the overbought zone, indicating a potential pullback or consolidation in the short term. If the price drops below $2,738, the trading pair may retreat to the 20-day EMA on the 4-hour chart. A strong rebound at the 20-day EMA would indicate that market sentiment remains positive, with bulls buying on dips. This would increase the likelihood of the price rising to $2,879.
Conversely, if the price falls and stabilizes below the 20-day EMA, it indicates that bulls are quickly taking profits. In this case, the trading pair may further decline to the 50-day Simple Moving Average (SMA).
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Original: “Ethereum (ETH) Reserve Purchases Could Trigger Rally to $3K”
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