Recently, Bitcoin has been trading sideways at the $110,000 mark, while Ethereum and its ecological tokens have performed much more strongly than before. Analysts at StarEx Exchange believe that after the US court halted Trump's trade policy, while Bitcoin digests the gains, funds may rotate to Ethereum ecological tokens.
The U.S. International Trade Court officially halted President Trump’s advocacy for the re-imposition of “Liberation Day” tariffs, ruling that his invocation of the International Emergency Economic Powers Act to impose comprehensive tariffs was an act of overstepping his authority, an event that became a positive driver for the crypto market.
After Bitcoin hit record highs, data from the futures market showed that derivatives traders became more cautious, with open interest generally down 10%-15% from the peak in February 2024, and the market leverage rate was significantly low. This means that the current Bitcoin market is more driven by spot buying rather than high leverage of derivatives. The concentrated inflow of funds also led to technical overbought conditions in Bitcoin in the short term, and some investors expect it to enter a short-term adjustment phase.
In this context, funds began to seek new allocation directions, and Ethereum became the first potential target for rebound. Especially under the multiple resonances of favorable policies, market style switching, and fundamental catalysis, ETH is ushering in a turnaround.
On May 27, SharpLink Gaming, a sports betting technology company listed on the US stock market, announced the completion of a private equity financing of up to US$425 million. The funds raised will be used to purchase Ethereum as the company's core treasury reserve asset. The financing was led by Ethereum ecosystem giant Consensys Software Inc., and well-known crypto funds such as ParaFi Capital, Electric Capital, Pantera Capital, and Galaxy Digital participated in the investment.
More symbolically, Ethereum co-founder and Consensys CEO Joseph Lubin will become chairman of SharpLink's board of directors after the transaction is completed, and will serve as the company's strategic advisor to help it explore on-chain gambling, Web3 user growth and other directions.
Analysts at StarEx Exchange believe that SharpLink's actions are groundbreaking. In the past, US-listed companies' purchases of crypto assets were mainly concentrated in Bitcoin, with MicroStrategy creating a model of "enterprise-level Bitcoin vault". SharpLink became the first US-listed company to use ETH as its main vault asset through private placement, creating a precedent for "Ethereum enterprise reserves". SharpLink is not simply betting on the price of ETH, but trying to create an Ethereum version of MicroStrategy, realizing corporate transformation by embracing the ETH ecosystem and strengthening its balance sheet.
This action is more like a benchmark case, aimed at promoting more companies to accept Ethereum as a reserve asset, thereby enhancing Ethereum's acceptance and strategic position in the mainstream financial market.
Analysts at StarEx Exchange believe that the current price of Bitcoin is at a historical high, but derivatives data show that the market lacks the previous leverage frenzy, reflecting that funds are conservative in their expectations for BTC's subsequent gains. While ETH was relatively stagnant in the last round of market conditions and has not yet broken through the 2021 high, its fundamentals have changed positively. With SharpLink announcing a heavy reserve of ETH, this behavior undoubtedly provides realistic support for "Ethereum's enterprise-level reserve value." Compared with Bitcoin, which is fluctuating at a high level, Ethereum's logic for compensating for the rise has been gradually established.
The US court halted Trump's tariff plan, easing the inflation and policy uncertainty pressure at the macro level. The Federal Reserve also maintained interest rates stable in the short term, providing the market with a more relaxed risk appetite environment. As Bitcoin consolidated at a high level, SharpLink's ETH reserve action not only stimulated market sentiment, but also may trigger a new round of compensatory gains centered on Ethereum.
Ethereum-related targets include the pledge leader LDO; the re-pledge leader Eigen; L2's OP, ARB, ZK; the lending leader AAVE; the DEX leader Uni, etc., which can be focused on. StarEx exchange analysts believe that Ethereum can be expected to reach $3,000-3,500.
