Ethereum has been bounced back to its main moving average for weeks, retaining momentum that occurred after its recent recovery. The ETH clings to the top edge of the narrow integrated channel, simultaneously testing the 200 EMA. The assets show short-term signs of mild bullishness, but volumes are declining and the overall situation at Ethereum is very disastrous.
However, there are new developments. This is a filing of the SEC by Sharplink Gaming. According to the filing, Sharplink Gaming, a $18 million market cap, is planning to purchase $1 billion worth of Ethereum for the Treasury Department. It's an incredible amount, especially for businesses that have little marketplace. In the cryptocurrency market as a whole, this $1 billion acquisition ranks one of the most aggressive corporate financial measures if it was made.
But the worst part is that ETH trades for hundreds of billions of dollars every day. In the overall context of daily flow, billion dollar purchases are barely noticeable. It only accounts for 0.3% of daily volume. It is more important to approach these headlines with moderate skepticism.
Sharplink's market capitalization and the entire Treasury Department are not sufficient to fund such a large acquisition without financial gimmicks or injecting external funds. They continue to have financial theatre stunts or crazy diamond handplays. In either case, traders must confirm their application and intent before falling into the headlines driven by FOMO. When it comes to Ethereum, the two most important levels to keep an eye on are the 200 EMA and its integration channel.
A test of the 50 EMA, close to $2,200, is probably in store if the price can't stay above this zone. This could shatter bullish stories and send ETH back into the bearish decline. On the other hand, if you exceed the upper boundary of the integrated channel by around $2,900, you could have another mini-rally.
