Ethereum Price Forecast: ETH eyes $3,800 as SharpLink plans to deploy $200 million into Linea

Ethereum price today: $3,970

• SharpLink will deploy $200 million in ETH on Linea to enhance its treasury yields.
• The initiative also involves a collaboration with EtherFi, EigenLayer and Anchorage Digital Bank.
• ETH could decline to $3,800 if it fails to hold the 100-day EMA.

Ethereum (ETH) dropped below $4,100 on Tuesday, despite SharpLink's plan to deploy $200 million in ETH from its treasury into Linea via a partnership with EtherFi, EigenLayer, and Anchorage.

SharpLink partners with Linea, EtherFi, EigenLayer and Anchorage in $200 million initiative

Ethereum treasury firm SharpLink Gaming (SBET) plans to deploy $200 million in ETH from its treasury into ConsenSys-backed Layer 2 Linea over the next few years. The initiative also involves a partnership with liquid staking protocol EtherFi, restaking platform EigenLayer and crypto custody platform Anchorage Digital Bank.

The Minnesota-based company, which already stakes a large portion of its holdings, aims to go a step further by boosting yields through restaking rewards.

Anchorage Digital Bank will serve as the custody client to aid the deployment process for SharpLink.

"SharpLink is leveraging Linea's institutional-grade infrastructure to make its ETH even more productive by unlocking scalable, secure and composable ways to optimize on-chain yield," the company wrote in a Tuesday statement. "The yield combines native Ethereum yield, restaking rewards from securing EigenCloud Autonomous Verifiable Services (AVSs), and direct Linea and ether.fi partner incentives, all within a compliant Layer 2 infrastructure."

The firm states that the collaboration supports its goal of advancing Ethereum and its ecosystem. SharpLink's Chairman, Joseph Lubin, who is also a co-founder of Ethereum, doubles as ConsenSys CEO.

After weeks on the sidelines, SharpLink purchased 19,271 ETH with proceeds from a private offering, according to an update last week. The firm holds 859,853 ETH, making it the second-largest digital asset treasury behind BitMine (BMNR).

SBET trades at $13.7, down nearly 4% at the time of publication on Tuesday, 

Despite the move from SharpLink, investors have begun to express doubts about Ethereum treasuries as ETHZilla sold portions of its ETH holdings to fund a share buyback program.

Ethereum Price Forecast: ETH declines below $4,100 key level, tests 100-day EMA

Ethereum experienced over $121.8 million in liquidations over the past 24 hours, led by $93 million in long liquidations.

ETH has declined below the $4,100 key level and 50-day Exponential Moving Average (EMA) on Tuesday after seeing a rejection at the resistance near $4,270. ETH could find support around $3,800 if it fails to hold the 100-day EMA.

ETH/USDT daily chart

On the upside, ETH has to clear the $4,270 hurdle and a descending trendline resistance to test the $4,500 key level.

The Relative Strength Index (RSI) and Stochastic Oscillator (Stoch) are trending downwards after a brief rise, indicating a return of dominant bearish momentum.