Ethereum Surges 15% as Institutions Accumulate $1.6 Billion in ETH

Ethereum investors have been actively accumulating ETH, driven by a significant weekly surge in the cryptocurrency's price. Over the past month, corporate treasury companies have scooped up at least $1.6 billion worth of Ether, with institutional buying surging over the past week as Ether rallied. These companies accumulated more than 545,000 ETH, highlighting a strong bullish sentiment among investors.

BitMine Immersion Technologies, chaired by Fundstrat’s Tom Lee, announced that its total Ether holdings were 163,142 ETH, worth around $480 million at current market value. Lee compared this accumulation to Michael Saylor’s aggressive Bitcoin strategy, suggesting that Ethereum could benefit from a similar ‘Wall Street put,’ implying that Wall Street will become bullish on Ethereum in the same way it is for Bitcoin.

Joseph Lubin’s gaming platform, SharpLink, has been particularly active in accumulating ETH. On July 11, it acquired 10,000 ETH, followed by 16,370 ETH on July 13, and an additional 24,371 ETH on Monday, bringing its total to over 255,000 ETH. This makes SharpLink the largest corporate Ethereum treasury. Lubin has referred to himself as a “self-appointed representative of The League of Extraordinary ETH Accumulator Gentlemen,” acknowledging the efforts of other companies in accumulating ETH.

Other companies that have recently acquired Ethereum for corporate treasuries include digital asset platform Bit Digital, with more than 100,000 ETH, and Blockchain Technology Consensus Solutions (BTCS), which raised $62.4 million to expand its ETH holdings to 29,122 ETH this month. GameSquare also announced a strategic plan for a $100 million Ethereum treasury on July 8, further expanding the list of Ethereum treasuries.

Ethereum-based digital investment funds have posted their 12th consecutive week of inflows, totaling $990 million, the fourth largest weekly inflow on record. This influx of capital indicates a strong bullish sentiment among investors, who are eyeing a potential price target of $3,400 for ETH. However, the cryptocurrency faces strong resistance near this level, which could pose a challenge to further upward momentum.

Institutional investors have also been increasing their holdings of ETH, with treasury companies accumulating more than 545,000 ETH over the past month. This accumulation, coupled with the fourth-highest weekly inflow on record for institutional funds, suggests that large investors are positioning themselves for potential gains in the Ethereum market. The sharp weekly gain in ETH's price, ending at $3,021, further underscores the bullish sentiment surrounding the cryptocurrency.

Despite the positive price action, the Ethereum Foundation recently sold 1,206.7 ETH for $3.61 million, which has drawn scrutiny from the market. This sale, however, does not appear to have had a significant impact on ETH's price, as the cryptocurrency continues to attract institutional investors. The aggressive accumulation of ETH by institutional investors, led by U.S. spot Ether ETFs, further supports the bullish narrative surrounding the cryptocurrency.

Ethereum's dominance in the decentralized finance (DeFi) sector remains unchallenged, with smart investors not only holding ETH but also maximizing its utility. This growing dominance in DeFi, coupled with the bullish sentiment among investors, suggests that ETH could continue to attract capital in the near term. However, investors should be mindful of the strong resistance near the $3,400 level, which could pose a challenge to further upward momentum.