Ethereum Reserve Concept Stocks Post Gains in Pre-Market Trading, ETHZ Surges 4.07%

Ethereum reserve concept stocks, such as SharpLink Gaming, Bitmine Immersion Technologies, ETHZilla, BTCS, COIN, and Bit Digital, surged in pre-market trading on the US stock market on August 26th. The stocks rose by 0.36% to 4.07%, with ETHZilla experiencing the largest gain. The surge could be attributed to the growing interest in Ethereum and blockchain technology.

Ethereum reserve concept stocks, such as SharpLink Gaming, Bitmine Immersion Technologies, ETHZilla, BTCS, COIN, and Bit Digital, surged in pre-market trading on the US stock market on August 26th. The stocks rose by 0.36% to 4.07%, with ETHZilla experiencing the largest gain. The surge could be attributed to the growing interest in Ethereum and blockchain technology.

Shares of Ethereum (CRYPTO: ETH) treasury companies opened lower in Monday’s pre-market trading after ETH failed to sustain its rally to record highs. The world's largest ETH treasury company, BitMine, was down over 6% in pre-market trading. The firm, holding 1.26% of the total ETH in circulation, has spearheaded the accumulation trend over the last two months [3].

The dip in stocks comes after ETH sharply retraced on Sunday following a flash crash that saw Bitcoin's (CRYPTO: BTC) price drop from $114,000 to $110,000. The pullback dampened some of the optimism that had built up earlier in the day, when the second-largest cryptocurrency climbed to a new all-time high of 4,953.73, surpassing its previous record set nearly four years ago. ETH surged alongside the broader cryptocurrency market over the weekend, following dovish remarks from Federal Reserve Chair Jerome Powell, who signaled potential interest rate cuts in September. Institutional interest in ETH has soared lately, with spot exchange-traded funds linked to the coin recording five consecutive months of net inflows [3].

Ethereum investors are booking profits after the cryptocurrency almost doubled in price in the last 60 days and reached a new all-time high of $4,946. Onchain data from Glassnode shows that Ethereum investors, on average, have secured more than 100% in paper gains, even after Monday’s 6% price slump. Historically, that’s when sellers offload Ethereum, as was the case in March 2024 and December 2020. The selloff is already happening. Ethereum’s net taker volume, a metric indicating whether aggressive buying or selling is the dominant force on crypto exchanges, has turned negative, according to CryptoQuant data [1].

Meanwhile, short sellers are piling into bearish bets on Ethereum futures contracts on the CME. For Illia Otychenko, lead analyst at crypto exchange CEX.IO, aggressive selling and mounting shorts are putting downward pressure on Ethereum’s price. But that doesn’t mean the bull run is over for Ethereum, Illia said. “Such a combination could lead to two potential outcomes: either [Ethereum] faces a short-term correction due to selling pressure, or it could see a local short squeeze if bullish momentum stays intact,” Otychenko said in comments shared with DL News [1].

Traders are already changing their posture ahead of any whipsaw in the market. Options data from Deribit, a crypto derivatives exchange, show traders are bearish on Ethereum in the short term, with September price calls closer to $4,000. That’s a possible hedge against a price slide in September. Traders of perpetuals, futures contracts without expiries, however, lined up longs at more than double the size of shorts, which indicates long-term bullish appetite for Ethereum’s price prospects [1].

References:
[1] https://finance.yahoo.com/news/ethereum-investors-flash-profit-taking-170405288.html
[2] https://www.benzinga.com/crypto/cryptocurrency/25/08/47304638/solana-to-follow-bitcoin-ethereum-with-1-billion-raise-by-these-three-crypto-firms
[3] https://finance.yahoo.com/news/cathie-wood-backed-bitmine-slides-095616178.html
[4] https://www.benzinga.com/crypto/cryptocurrency/25/08/47303270/cathie-wood-backed-bitmine-slides-pre-market-as-ethereum-reverses-from-record-highs-but-this-peter-thiel-linked-eth-treasury-stock-has-gained