180 Life Sciences (ATNF) Soars 19.45% on Crypto Treasury Rebrand – What’s Next for ETHZilla?

Summary
• 180 Life Sciences (ATNF) surges 19.45% intraday to $12.2324, trading near 52-week high of $17.75
• Company announces $349M Ethereum treasury and rebrand to ETHZilla Corporation
• Turnover skyrockets 2,047% as institutional capital fuels on-chain yield strategy

180 Life Sciences (ATNF) has ignited a frenzy in biotech and crypto markets, surging 19.45% in a single trading session. The stock’s dramatic move follows the company’s announcement of a $349 million Ethereum treasury and a strategic rebrand to ETHZilla Corporation. With turnover spiking 2,047% and a dynamic PE ratio of -230.15, investors are scrambling to decipher the implications of this radical pivot into crypto treasury management.

Ethereum Treasury Rebrand Sparks Volatility
180 Life Sciences’ 19.45% intraday surge is directly tied to its strategic shift into Ethereum treasury management. The company disclosed holding 82,186 ETH ($349 million) under its new ETHZilla brand, positioning itself as a public company focused on on-chain yield generation. This move, managed by Electric Capital, aims to outperform traditional staking returns. The rebrand follows a $425 million private placement and a $156 million convertible note offering, with proceeds earmarked for ETH purchases and iGaming operations. The stock’s explosive move reflects investor enthusiasm for the crypto treasury model, akin to MicroStrategy’s Bitcoin strategy, and the company’s pivot from biotech to blockchain.

Biotechnology Sector Disconnected from Crypto-Driven Rally
Technical Analysis and ETF Strategy for ETHZilla’s Volatility
• RSI: 86.81 (overbought), MACD: 1.08 (bullish), 200-day MA: $1.69 (far below current price)
• Bollinger Bands: Price at $12.23, well above upper band of $6.80, signaling extreme volatility
• Support/Resistance: Key resistance at 52-week high of $17.75; critical support at $11.88 (intraday low)

ATNF’s technicals paint a picture of short-term euphoria. The RSI at 86.81 suggests overbought conditions, while the MACD histogram (0.417) and bullish crossover indicate momentum. However, the stock is trading 612% above its 50-day MA and 759% above the 200-day MA, raising concerns about a potential correction. Traders should monitor the $17.75 52-week high as a critical psychological level. Given the absence of options liquidity, a cash-secured put strategy near $11.88 could capitalize on a pullback, while bullish investors might consider a tight stop-loss above $11.88 to ride the momentum.

Backtest 180 Life Stock Performance
The backtest of ATNF's performance after a 19% intraday surge shows mixed results. While the stock experienced a positive return in the short term, the overall trend was negative over longer periods. This suggests that while the surge may have been beneficial in the immediate aftermath, it did not lead to sustained long-term growth.

ETHZilla’s Rebrand: A High-Risk, High-Reward Gamble
180 Life Sciences’ transformation into ETHZilla Corporation is a high-stakes bet on Ethereum’s future. While the stock’s 19.45% surge reflects optimism about the crypto treasury model, the overbought RSI and extreme deviation from moving averages suggest caution. Investors should watch for a breakdown below $11.88, which could trigger a sharp reversal. Meanwhile, the sector leader MicroStrategy (MSTR) is down -1.69%, signaling mixed sentiment in crypto-related plays. For ETHZilla, the path forward hinges on Ethereum’s price action and the success of its on-chain yield program. Aggressive bulls may consider a tight stop-loss above $11.88 to stay in the rally, while bears should eye the $17.75 level for a potential short-term top.