Ethereum News Today: Ethereum Falls Below $4,500 as SharpLink Reports $103M Net Loss

Ethereum’s price dipped below $4,500 following SharpLink Gaming’s second-quarter financial report, which revealed a net loss of $103 million [1]. The decline came after an unsuccessful attempt to retest the $4,700 level, triggering over $169 million in futures liquidations and shifting market sentiment toward caution [1]. At press time, Ethereum traded near $4,468, up 0.94% in the last 24 hours, with weekly gains at 6.2% and a monthly increase of nearly 23% [1].

SharpLink’s report highlighted the growing scale of its Ethereum holdings—728,804 ETH, valued at more than $3.2 billion—as it transitioned to an Ethereum-focused treasury model in May 2025 [1]. The company raised over $2.6 billion to accumulate the tokens, with nearly all deployed into staking to generate 1,326 ETH in validator rewards. Despite these efforts, revenue fell 30% year-over-year, and the firm recorded an $87.8 million impairment charge under U.S. GAAP rules, which required it to mark ETH at the quarter’s lowest price of $2,300 [1].

The firm’s shares also dropped 15% following the earnings release, closing at $19.85. SharpLink’s market net asset value (mNAV) fell below 1, indicating a decline in shareholder equity relative to the value of its crypto assets [1]. Analysts noted that while the firm’s treasury expansion is long-term bullish for Ethereum, its weak fundamentals in other business areas and accounting-driven losses remain a drag on investor confidence [1].

Ethereum’s price action reflected mixed sentiment, consolidating within an ascending channel near key support levels of $4,350–$4,400 [1]. A rebound above this range could signal a continuation toward $4,785 and the $5,000 psychological level. Conversely, a close below $4,170 could trigger a deeper correction toward $3,950 [1]. Technical indicators, including the RSI and MACD, showed signs of bearish exhaustion, though a bullish engulfing candle above $4,450 could confirm renewed upside momentum [1].

The broader Ethereum ecosystem remains active, with institutional inflows into Ethereum-linked ETFs exceeding $5.4 billion in recent months [1]. Meanwhile, Layer 2 networks like Arbitrum, Optimism, and zkSync continue to reduce transaction costs and improve throughput, supporting the token’s utility and long-term fundamentals [1].

SharpLink’s results underscore the challenges of adopting a long-term Ethereum treasury model amid short-term revenue pressures and accounting constraints. As the market digests the firm’s financial performance, traders are closely watching whether Ethereum can defend its near-term support levels or face a deeper pullback [1].

Source:

[1] Ethereum Price Prediction: Will SharpLink’s Massive ETH Holdings Offset Revenue Decline? (https://cryptonews.com/news/ethereum-price-prediction-will-sharplinks-massive-eth-holdings-offset-revenue-decline/)