Ethereum Price Update: $4,490
Ethereum (ETH) briefly fell below $4,500 on Tuesday. This happened as SharpLink Gaming continued its share buyback program by repurchasing 1 million shares of its common stock.
SharpLink Gaming Repurchases 1 Million Shares
SharpLink Gaming, a Minnesota-based Ethereum treasury firm, bought back 1 million shares of its common stock (SBET) on Monday. The shares were purchased at an average price of $16.67 each. This is part of SharpLink’s ongoing $1.5 billion share buyback program, which started in late August.
So far, the company has spent nearly $32 million to repurchase 1.93 million shares. SharpLink’s share price has dropped 20% since August 22, while Ethereum’s price fell by about 8% in the same period.
Because of this, SharpLink’s market value is now lower than the value of its net assets. The company said it will focus on buying back shares rather than raising new capital. SharpLink stated, “We believe our common stock is significantly undervalued in the market. Stock repurchases are the best way to increase shareholder value under current market conditions.”
SharpLink holds 838,152 ETH. This is second to BitMine Immersion (BMNR), which holds 2.15 million ETH. Since June, total Ethereum holdings by digital asset treasuries (DATs) have passed 3.88 million ETH, according to the Strategic ETH Reserve website.
Standard Chartered analysts predict Ethereum DATs have the highest chance of long-term success compared to Bitcoin and Solana DATs, despite recent share price drops.
Ethereum Price Forecast: Support Near 20-Day EMA
Ethereum saw $50.9 million in futures liquidations in the past 24 hours, with $42.3 million from long positions and $8.6 million from short positions, according to Coinglass data.
ETH briefly dropped below $4,500 and is now testing the 20-day Exponential Moving Average (EMA). If ETH bounces off this level, it could rise back above $4,500 and aim for $4,800.
On the downside, ETH may find support near the 50-day Simple Moving Average (SMA) at $4,300. This area has strong demand, with over 1.7 million ETH bought recently between $4,300 and $4,400. The $4,000 level is another important support zone.
The Relative Strength Index (RSI) and Stochastic Oscillator are moving downward and testing neutral levels. A drop below these levels could increase selling pressure.
If ETH falls below $4,000, this bullish outlook will be invalidated. The next support could be near the 100-day SMA.
