TLDR
Ethereum failed to maintain support above $3,700 despite SharpLink Gaming’s purchase of 83,000 ETH
ETH experienced record $465 million outflow from US spot Ethereum ETFs after 20 days of inflows
SharpLink has boosted its ETH holdings to 521,939 and plans to expand its ATM facility to $6 billion
ETH futures market saw $108 million in liquidations in 24 hours ($74 million long, $34 million short)
Price analysts view $3,094 as a critical support level for maintaining the upward trend
Ethereum continues to face resistance at the $3,700 level despite major corporate purchases. The second-largest cryptocurrency by market cap has struggled to maintain momentum even as companies like SharpLink Gaming add substantial amounts to their treasury.
On Tuesday, ETH dipped below the $3,700 threshold. This occurred shortly after SharpLink Gaming revealed its purchase of more than 83,000 ETH last week.
The price weakness comes during a period of record outflows from US spot Ethereum ETFs. Monday saw $465 million exit these funds, ending a 20-day streak of inflows that had totaled $5.3 billion.
SharpLink Gaming has emerged as a major corporate holder of Ethereum. Their recent purchase brought their total holdings to 521,939 ETH as of August 3.
The esports-oriented marketing company is pursuing an aggressive ETH acquisition strategy. They have allocated $264.5 million to an at-the-market facility to support these purchases.
SharpLink(@SharpLinkGaming) bought another 18,680 $ETH($66.63M) 15 minutes ago.
SharpLink currently holds 498,711 $ETH($1.81B).https://t.co/cW8EvzSFxt pic.twitter.com/OHCkM4eWUY
— Lookonchain (@lookonchain) August 4, 2025
Corporate ETH Accumulation Accelerates
SharpLink began building its ETH treasury in May through a $425 million private placement. The company has filed with the SEC to increase its ATM facility to $6 billion to further expand its holdings.
Most of SharpLink’s ETH is being staked, generating passive income. Since launching its treasury in June, the company has earned 929 ETH in staking rewards.
SharpLink now ranks second among publicly traded companies holding ETH. The leader is BitMine, backed by Peter Thiel, which owns more than 833,100 ETH.
Combined, ETH treasury vehicles now control approximately 1.9 million ETH. This corporate accumulation represents a growing trend of institutions treating Ethereum as a treasury asset.
Despite this bullish corporate activity, market sentiment has been mixed. The futures market experienced $108 million in liquidations over 24 hours, with long positions accounting for $74 million of these losses.
Market Volatility and Technical Outlook
After a 6% rally at the start of the week, ETH failed to sustain momentum at the $3,700 level on Tuesday. The price has shown signs of retracing toward $3,470.
Technical analysts are watching the $3,094 level as key support. Many believe that as long as ETH maintains this price floor, the broader uptrend could remain intact.
The hourly chart shows ETH trading below $3,600 and the 100-hour Simple Moving Average. A bearish trend line has formed with support around $3,620.
On the upside, ETH faces resistance at $3,620, followed by a stronger barrier at $3,700. Breaking above $3,750 could open the path to $3,820 and potentially $4,000.
If the price fails to clear $3,620, support exists at $3,550 and $3,510. A drop below these levels could send ETH toward $3,420 or even $3,350.
The market’s response to President Trump’s announcement of new reciprocal tariffs on international trading partners may have contributed to the recent market uncertainty.
ETH has seen increased volatility compared to Bitcoin in recent trading sessions. While BTC has shown relative stability, ETH has experienced wider price swings.
Short-term price action will likely depend on whether ETH can reclaim the $3,700 level as support. The $3,094 support remains the level to watch for maintaining the broader bullish structure.
The record ETF outflows present a concerning signal for market sentiment toward Ethereum in the near term. These flows will be closely monitored in the coming days.
