The Ethereum price witnessed strong overhead supply at the $3,885 level during Tuesday’s U.S. market session. The long-wick rejection candles at this resistance accentuate that the sellers are actively defending this level, raising the likelihood of a renewed correction trend. As the pullback may unsettle retail investors, corporate firms like Sharpink continue to show their confidence in the asset’s long-term values, having significantly boosted their ETH holdings since last week.
SharpLink Bets Big on ETH With $290M Purchase
Since last week, the Ethereum price recovery has been struggling to bypass the $3,885 barrier. The long-wick rejection candles at this resistance accentuate the intense overhead supply and risk for a bearish pullback.
While the mounting selling pressure may stall retail interest, the “Ethereum version of MicroStrategy”—SharpLink (SBET)—remains confident in Ethereum. According to a recent tweet from the company’s official X (formerly known as Twitter) account, SharpLink acquired 77,210 ETH for $219 million between July 21 and 27, at an average price of $3,756.
Following the recent accumulation, SharpLink now holds a whopping 438,190 Ethereum. The company’s ETH per share, termed internally as “Ethereum Concentrate,” has climbed from ~3.06 to ~3.4. This marks a 70% increase since the start of the strategy on June 2nd.
In addition to the aggressive buying, SharpLink has also earned 732 ETH in cumulative staking rewards, highlighting the yield-generating potential of institutional ETH holdings.
Such corporate adoption could continue to boost Ethereum demand and bolster its price for a stable rally.
Ethereum Price Seeks Support At Major Fibonacci Level
On July 27th, the Ethereum price gave a bullish breakout from the last swing high resistance of $3,860. However, the price failed to sustain this level, which resulted in a sharp reversal to the current trading value of $3,772.
As the broader market sentiment suggests a healthy pullback is needed to recoup bullish momentum, the Ethereum price may experience a notable leg down shortly. With sustained selling, the price could tumble 6.72% down to test the 23.6% Fibonacci retracement placement level at $3,500.
A potential formation of a double-top reversal pattern could further accelerate the market selling pressure for a bearish breakdown.
However, with increasing corporate adoption and ETF inflows, the ETH price could likely hold $3,500 support. The daily chart analysis shows that the $3,250 and $3,000 levels stand as suitable pullback support for the top altcoins, as they coincide with the 38.2% and 50% retracement levels, respectively.
