Ethereum approaches the $2,500 threshold: Is a breakout imminent?

The price of Ethereum (ETH) has fallen by 1% in the past 24 hours, right after Bit Digital (BTBT) — the Bitcoin mining company listed on Nasdaq — unexpectedly announced plans to shift to a staking and Accumulation strategy for Ethereum in its asset portfolio.

ETH price weakens despite Bit Digital shifting to Ethereum treasury strategy

After two consecutive increases thanks to the ceasefire between Israel and Iran, the recovery momentum of Ethereum (ETH) has started to slow down. The price of ETH has slightly adjusted by 1%, amid an increase in the amount of coin on exchanges — a signal indicating weakening demand and selling pressure gradually returning.

ETH reserves on the exchange | Source: CryptoQuantAlthough the market is generally quite sluggish, large institutions remain steadfast in their long-term strategy regarding Ethereum. Recently, Bit Digital – a company that previously specialized in Bitcoin mining – announced a strategic turning point, transforming into a business focused on staking and Accumulation of ETH.

According to a press release issued on Wednesday, Bit Digital will completely cease Bitcoin mining operations and reallocate resources to expand its Ethereum staking segment. The company stated that it began building its staking infrastructure and position in 2022 and is currently gradually increasing its held ETH amount.

Not stopping there, Bit Digital also revealed plans to offer common stock with a public underwriting. The entire number of shares will be issued and sold directly by the company, with the goal of using the capital raised to increase its ETH reserves, strengthening its role as a treasury and staking platform on Ethereum. However, the scale and specific timing of the issuance have not yet been announced.

As of March 31, Bit Digital owns 24,434.2 ETH and 417.6 BTC — a clear testament to the shift in its digital asset investment strategy.

This move reflects an increasingly clear trend in the cryptocurrency industry: many businesses are ramping up the deployment of digital treasury models, particularly with Ethereum. For example, SharpLink Gaming (SBET) is currently the public company holding the largest amount of ETH, with a total of 188,478 ETH — equivalent to approximately 457 million USD at the current market price.

Another case is BTCS, a company listed on the Nasdaq, which also just bought an additional 1,000 ETH last weekend, increasing its total holdings to 14,600 ETH.

Ethereum Price Forecast: ETH needs to surpass the $2,500 mark to avoid confirming a bearish flag pattern

According to data from Coinglass, in the past 24 hours, Ethereum has witnessed a total value of Futures positions liquidated amounting to 49.49 million USD. Among them, Long positions ( expecting price increase) accounted for 30.09 million USD, while Short positions ( expecting price fall) were liquidated at 19.40 million USD.

During this period, ETH attempted to break out when it surpassed the 50-day exponential moving average (EMA) and the upper boundary of the downtrend channel. However, the upward momentum was quickly halted just below the important resistance area at $2,500 – a level that the market is closely monitoring.

ETH/USDT daily chart | Source: TradingViewIf it cannot soon recover the $2,500 mark and loses the support zone from the downtrend channel, the "bear flag" pattern will officially be confirmed. In a negative scenario, ETH could slide deep below $2,100, especially if it breaks the lower edge of the symmetrical triangle pattern that is forming.

On the contrary, if ETH surpasses the resistance zone of $2,500 along with the 200-day simple moving average (SMA), the recovery momentum may continue with the aim of testing the upper edge of the symmetrical triangle pattern, even heading towards the strategic level of $2,850.

Technically, the Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are currently oscillating around the neutral zone. If both of these indicators reverse and fall, selling pressure may increase again. Conversely, a bullish crossover signal would open up the possibility of a strong recovery for the bulls.

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