Ethereum(ETH) is hitting the $4000 mark! SharpLink has aggressively purchased 77,000 ETH, can the rising momentum continue with RSI overbought?

Ethereum(ETH) is currently priced at $3,908, having risen 3.2% in the past 24 hours, and a cumulative increase of 61% over the last 30 days. The price has seen a strong rebound from the low of $3,530 on July 24, now aiming for the key psychological level of $4,000. On-chain and derivatives data are impressive: the 24-hour spot trading volume surged to $32.95 billion (up 47.3% daily), while the total open interest of futures across the network (OI) broke through $60 billion, setting a new historical high, with derivatives trading volume at $89.16 billion (up 61.44% daily), indicating that traders are actively positioning for volatile market conditions. At the institutional level, gaming and data company SharpLink was tracked on-chain to have significantly increased its holdings by 77,210 ETH (approximately $295 million) on July 28, bringing its total holdings to 438,017 ETH (approximately $1.69 billion), making it the second-largest known ETH holder among institutions. Technically, the daily chart maintains strong bullish momentum, but the RSI has risen to 82.89, entering the overbought zone. This article analyzes the key conditions for ETH to break through $4,000, SharpLink's "strategic accumulation" strategy and its $6 billion financing plan, the bullish and bearish signals emitted by technical indicators, and provides traders with key insights.

1. ETH Strongly Attacks, On-chain & Derivatives Data Surge Across the Board As of the time of writing, the trading price of Ethereum (ETH) is $3,908**. Its recent trend has been strong, rising 3.2% within 24 hours and accumulating an increase of 61% over the past 30 days. The price has significantly rebounded from the recent low of $3,530 reached on July 24 and is currently trying to challenge the important psychological and technical resistance level of **$4,000. Market activity has significantly increased:

• Spot trading volume: surged to 32.95 billion USD in the last 24 hours, an increase of 47.3% compared to the previous day.
• Futures Open Interest (OI): According to CoinGlass data, the total ETH futures OI increased by 7.72% to $59.94 billion, historically breaking through the $60 billion mark.
• Derivatives Trading Volume: 24-hour derivatives trading volume reached $89.16 billion, a significant increase of 61.44%. These data indicate that investor interest is high, and traders are actively establishing positions, anticipating that price volatility may increase.

II. Institutional Whales Appear: SharpLink Splurges $295 Million to Increase Holdings in ETH This round of pump is synchronized with a new wave of Institutional Accumulation. The blockchain data analysis platform Lookonchain disclosed that the gaming and data company SharpLink purchased 77,210 ETH again on July 28, worth approximately $295 million. This increase brought their total ETH holdings to an astonishing 438,017 ETH, valued at about $1.69 billion at current prices. It is reported that the majority of their ETH is staked through platforms like Figment and Hoppers DApp to earn returns.

• Financing Support: The funds for SharpLink's ETH purchases come from its aggressive equity sales plan. The company has significantly raised its equity financing target from the previous $1 billion to $6 billion. So far, it has completed $721 million in financing, which includes a $425 million private placement round supported by Consensys, Pantera Capital, ParaFi Capital, and Electric Capital.
• Strategic Positioning: SharpLink correctly establishes its position as a long-term institutional ETH holder. Ethereum co-founder Joseph Lubin serves as its chairman, while former BlackRock ( BlackRock ) strategist Joseph Chalom serves as co-CEO.
• Holdings Ranking: According to ETH Strategic Reserve data, SharpLink has now become the known second largest ETH holder, second only to Bitmine Immersion Tech, which holds 566,000 ETH. If it achieves its ETH acquisition target, SharpLink will hold over 1 million ETH, accounting for about 1% of the total ETH supply.

3. Technical Analysis: Strong Momentum but RSI Overbought, Focus on Key Levels of Attack and Defense

Ethereum daily chart shows sustained bullish momentum:

• Moving Average Support: The price continues to close above the 20-day Simple Moving Average (20-day SMA, currently at $3,432), which serves as a short-term dynamic support.
• Bollinger Bands Signal: The expansion of the Bollinger Bands channel indicates an increase in volatility, and the ETH price is running closely along the Upper Band, which is usually a signal of Bullish Continuation.
• RSI Alert: The Relative Strength Index (RSI) is currently at a high of 82.89, indicating that the market has entered the Overbought region. Typically, an RSI reading above 80 suggests a potential short-term pullback or consolidation. However, it is important to note that the RSI line has not yet shown a significant downward bend, which means that Momentum has not yet exhausted.
• Key Price Level:
  • Support: $3,600 is the key support level. As long as the daily chart closes above this level, the uptrend remains intact. If it breaks below the 20-day SMA ($3,432), it may trigger a pullback to $3,250.
  • Resistance/Target: Successfully breaking through $4,000 **will confirm the strength of the breakout, the next important target is at **$4,168.

Conclusion: The $4,000 Battle Amid Institutional Accumulation and Derivatives Frenzy Ethereum is making a strong push towards the $4,000 mark, driven by continued large purchases from institutional whale SharpLink (totaling 438,000 ETH) and a record $60 billion in open contracts in the futures market. The technical trend is clearly bullish, with Bollinger Bands expanding and prices running along the upper band indicating potential continuation of upward momentum. However, the RSI Overbought signal acts like a yellow light, warning of short-term overheating risks, necessitating caution for possible pullbacks or consolidations. For traders, $3,600 has become a watershed for determining the strength of short-term trends, and whether or not the $4,000 level is breached will be the key to unlocking higher levels (such as $4,168). The long-term strategic layout of institutions like SharpLink, combined with the upcoming Ethereum ETF expectations (if approved), provides solid fundamental support for ETH, but short-term investors still need to pay attention to the overheating warnings from technical indicators and manage risks carefully.