SharpLink Gaming, a Nasdaq-listed company, has made a significant move in the crypto space by establishing the first Ethereum (ETH) treasury. This groundbreaking initiative is backed by none other than Ethereum co-founder Joe Lubin. The company will invest a substantial $425 million to acquire 120,000 ETH, signaling a strong commitment to the future of Ethereum.

The decision by SharpLink Gaming to create an ETH treasury mirrors the successful strategy employed by MicroStrategy (MSTR) with Bitcoin. MSTR's Bitcoin treasury has yielded over $8.2 billion in gains, showcasing the potential for companies to leverage stock and bond sales to invest in cryptocurrencies.

Former Ethereum core developer Eric Conner highlighted the bullish implications of SharpLink's move, emphasizing how this could create a public ETH proxy for funds unable to hold tokens directly. The acquisition of 120,000 ETH, which is expected to be staked, may lead to supply compression by reducing the circulating supply of ETH. This move also helps position ETH as a digital reserve collateral, potentially driving its adoption on mainstream balance sheets through an equity wrapper like SharpLink Gaming.

However, crypto analyst VICTOR cautioned against excessive optimism, pointing out the risks associated with investing in an altcoin that is still down 19% in 2025. Despite this, the news of SharpLink's ETH treasury has had a positive impact on the Ethereum market.

The announcement has coincided with a surge in Ethereum futures market activity, with Ether futures open interest hitting an all-time high of $36.1 billion. This represents a significant increase of $3.5 billion in just 24 hours, reflecting heightened trader interest in ETH.

In terms of price action, Ether prices have climbed 4.5% on the daily chart, with market analysts predicting a potential leveraged-fueled pump for the altcoin. Over the past month, Ether prices have surged by 48%, with technical indicators suggesting a bullish breakout pattern on the horizon.

On the daily chart, Ether's price action has formed a descending triangle, a pattern that typically signals an imminent rally. The pattern is bordered by an upper resistance level around $2,700, with a potential target range of $3,100-$3,200 upon a bullish breakout. The relative strength index (RSI) at 68.50 further supports this bullish outlook, indicating strong momentum for Ether.

Overall, SharpLink Gaming's move to establish an ETH treasury has generated excitement in the crypto community and

Source: https://cointelegraph.com/news/ethereum-price-target-shifts-to-3k-after-sharplink-adopts-eth-treasury-strategy?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound