Ethereum Treasury Adoption Reaches 2.46 Million ETH Worth $11 Billion
Ethereum is currently experiencing a price correction after a period of strong momentum, with institutional adoption influencing its long-term market dynamics. Key points include:
- Over 16 companies have adopted the “Crypto Treasury Strategy,” holding 2,455,943 ETH valued at nearly $11 billion.
- This strategy mirrors Bitcoin's accumulation approach but differs due to Ethereum's lack of a fixed supply cap and variable issuance dynamics influenced by network activity and the EIP-1559 burn mechanism.
- Institutional holdings are reducing liquid supply, enhancing Ethereum's strategic asset status, while also posing risks of supply growth during low network activity periods.
- Concentration risks exist, as major holders like BitMine Immersion Technologies and SharpLink Gaming control only small percentages of total ETH supply, which could lead to market volatility if large holders sell.
- ETH futures open interest is around $38 billion, increasing leverage and potential for price volatility; a recent liquidation event highlighted this fragility.
- Currently trading at approximately $4,227, Ethereum remains above key moving averages, indicating a bullish trend despite the correction.
- Maintaining support around $4,200–$4,100 is crucial for a potential retest of resistance near $4,790; failure to hold may lead to a drop to the $3,800–$3,600 range.
