ETH, the native cryptocurrency of smart contract giant Ethereum, is down 1% during Monday’s U.S. market hours. The downtick followed the broader lack of bullish momentum and overhead selling pressure on Bitcoin. While the near-term trend on ETH suggests prolonged consolidation, the increasing institutional investment in this asset indicates its long-term growth potential. Is the top altcoin nearing a bullish breakout?
Bit Digital Converts Entire Treasury to Ethereum
Since last weekend, the Ethereum coin has shown a slowdown in recovery momentum as price grapples with $2,600 resistance. While the consolidation may bore retail investors and speculation, the institutional firm continues to project its confidence in ETH’s growth.
According to a recent press release, Bit Digital Inc. has officially transitioned its entire treasury reserves from Bitcoin to Ethereum, making it the largest publicly traded company holding ETH.
The move follows a substantial $172 million public equity raise, which is utilized to purchase Ethereum coins. Bit Digital also disclosed that it has liquidated 280 BTC to further bolster Ether accumulation.
Till March 31, 2025, Bit Digital held 24,434 ETH. With the recent proceeds from the offering and BTC conversion, the firm now holds approximately 100,603 ETH, signaling its strong commitment to Ethereum’s future.
“Bit Digital is aligning itself with Ethereum’s long-term potential and positioning itself as a focused Ethereum treasury platform in the public markets. We are starting with exposure to over 100K ETH for now, but we intend to aggressively add more so we become the preeminent ETH holding company in the world,” said Sam Tabar, Chief Executive Officer of Bit Digital
Such institutional adoption could drive demand pressure on the Ether price and support a sustained recovery.
Inverter Head & Shoulder Sets a Rally to $3,000
Over the last two weeks, the Ethereum price experienced a bullish bounce, rising from $2,115 to $2,500, which projects a 20% gain. This upswing, as the daily chart shows, is the formation of a potential bullish reversal pattern called an inverted head and shoulders. The chart setup is characterized by three troughs: the middle head extending deeper than the two shallow dives, showcasing the shoulders.
At $2,546, the coin price is just 1.36% away from the next line breakout at $2,550. A potential breakout from this resistance would intensify the buying momentum and bolster ETH to challenge another key resistance of the downsloping trendline at $2,630.
A potential breakout from this system could support buyers to hit the last strong high resistance at $2863, followed by a leap above $3000.
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