Ethereum (ETH) price prediction: Must recover to $2500 to prevent a bearish flag pattern.

Gate news, following the announcement by Bitcoin miner Bit Digital (BTBT) on Wednesday to shift towards Ethereum (ETH) staking and capital management strategies, Ethereum has fallen by 1% in the past 24 hours.

After two consecutive days of rising following the ceasefire between Israel and Iran, bullish momentum weakened, and Ethereum fell by 1%. The reason for this decline is the increase in Ethereum exchange reserves, indicating sluggish demand and a slight increase in selling pressure.

(Source: CryptoQuant)

According to a press release issued on Wednesday, despite the calm in the market, corporate entities continue to allocate funds to ETH. Nasdaq-listed Bitcoin miner Bit Digital announced it will make a decisive shift to become a company focused on ETH staking and finance.

The company announced plans to gradually shut down its Bitcoin mining business and use the proceeds to expand its Ethereum staking activities. Bit Digital claims that it began building Ethereum positions and staking infrastructure in 2022 and has been gradually increasing its holdings of ETH.

Bit Digital also announced the launch of its underwritten public offering of common stock, with all shares to be directly issued and sold by the company. The company stated that the proceeds from this offering will be used to expand its Ethereum holdings and strengthen its strategy to transition towards an ETH treasury and staking platform. However, the scale and timing of this offering have not yet been disclosed.

Bit Digital revealed that as of March 31, it holds 24,434.2 Ether and 417.6 Bitcoin.

This move aligns with the growing trend among cryptocurrency companies that adopt funding management models aimed at providing exposure to Ethereum and other cryptocurrencies. SharpLink Gaming (SBET) is one of them, with its Ethereum holdings ranking among the top in publicly listed companies.

The company holds a total of 188,478 ETH, which is worth approximately 457 million dollars at the current price.

BTCS, listed on Nasdaq, also acquired 1,000 ETH last Friday, increasing its treasury holdings to 14,600 ETH.

ETH Price Analysis: Must Recover $2500 to Prevent Verification of Bearish Flag

Coinglass data shows that in the past 24 hours, the liquidation amount of Ethereum futures reached 49.49 million USD, with long liquidations amounting to 30.09 million USD and short liquidations amounting to 19.40 million USD.

In the past 24 hours, Ethereum briefly broke through the upper boundary of the downtrend channel and the 50-day Exponential Moving Average (EMA), before facing rejection below the key level of $2500.

If ETH fails to recover the $2500 level and loses support at the upper channel, it will confirm a bearish flag pattern. If ETH fails to hold the support at the lower trend line of the symmetrical triangle pattern, it may lead to a price fall below $2100.

On the positive side, ETH must break through the resistance level of $2500 and the 200-day simple moving average (SMA) to test the upper boundary of the symmetrical triangle and the possible key level of $2850.

The Relative Strength Index (RSI) and the Stochastic Oscillator (Stoch) are testing their neutral levels. If they fall below this level, it could trigger a resumption of bearish momentum, but if they break above this level, it will accelerate bullish pressure.

(Source: Trading View)