Ethereum Price Hits $4,520 After Bit Digital Boosts Holdings
Ethereum (ETH) rose to $4,520 on Wednesday. This came after Bit Digital announced it increased its Ethereum treasury to 150,244 ETH. The move followed a $150 million convertible note offering.
Bit Digital Raises $150 Million to Buy More Ethereum
Bit Digital bought 31,057 ETH using funds from its recent $150 million convertible note offering. The company now holds 150,244 ETH, worth about $670 million. This makes Bit Digital the sixth-largest Ethereum treasury, according to StrategicETHReserve data.
CEO Sam Tabar said, “This purchase shows our commitment to building shareholder value by financing ETH accumulation on terms that increase NAV per share.”
The convertible notes were priced at $4.16, an 8.2% premium to the company’s market-cap-to-net asset value (mNAV). Tabar added, “We view ETH as foundational to digital financial infrastructure and believe current levels offer a good long-term entry point.”
Bit Digital is not alone in expanding its Ethereum holdings. BitMine Immersion recently grew its stash to 2.83 million ETH, becoming the largest public holder of Ethereum.
US spot Ethereum ETFs also saw strong inflows. They recorded $420.8 million in net inflows on Tuesday. This marks seven straight days of inflows, totaling $1.9 billion, according to SoSoValue data.
Ethereum Price Outlook: Faces Resistance Near $4,800
Ethereum saw $88.3 million in futures liquidations over the past 24 hours. This included $48.6 million in long and $39.6 million in short liquidations.
ETH found support near its 50-day Simple Moving Average (SMA). It is now testing a descending trendline resistance from August 24.
If ETH breaks above this trendline, it could retest the $4,800 resistance level. If rejected, the price may fall below the 50-day SMA toward $4,100. The 100-day SMA is another key support level, defended by bulls in June and September.
Technical indicators like the Relative Strength Index (RSI) and Stochastic Oscillator show bullish signals. Both have stopped declining and remain above neutral levels.
