Ethereum (ETH) Price Prediction: Bitcoin Hits All-Time High Driving Surge, GameSquare Announces Bond Issuance Bullish News

Today (10) in the Asian early trading session, Ethereum (ETH) was driven by Bitcoin reaching a historic new high, with the price rising to around 2770 USD. The market surge highlights the strong correlation between Bitcoin and top alts. GameSquare announced plans to raise 100 million USD to launch an ETH treasury.

GameSquare will launch a $100 million ETH fund

Following the announcement by GameSquare, an esports and media company listed on NASDAQ, on Tuesday that it will launch a $100 million Ethereum treasury after receiving board approval, the pump of ETH has continued for the second consecutive day, making the surge of ETH noteworthy.

The company plans to raise $8 million by publicly offering 8.42 million shares of stock at an issue price of $0.95 per share. The company also granted the underwriter, Lucid Capital, a 45-day option to purchase an additional 1.26 million shares at the issue price.

This issuance is the first batch of a series of "phased" investments that the company plans to gradually implement, and the proceeds will be used to execute the Ethereum financial strategy.

GameSquare CEO Justin Kenna stated: "This new capital management strategy enhances our financial flexibility, enabling us to support a clear capital allocation plan focused on seeking additional ETH asset purchases, funding potential stock buybacks, and reinvesting in our growth plans."

GameSquare stated that its ETH treasury will be built on the yield optimization platform Medici by the cryptocurrency management company Dialectic, to generate yields on its held ETH. The company also mentioned that it may utilize stablecoins and non-fungible tokens to implement other yield generation strategies on Ethereum.

The company's stock GAME rose by 40% on Wednesday, and since the launch of the ETH treasury on Tuesday, its increase has exceeded 100%.

This development follows an increasingly growing trend where low market cap listed companies are leveraging Bitcoin to issue crypto bonds—some of these companies have chosen alts such as ETH and Solana (SOL).

On Monday, Bit Digital announced that it has expanded its treasury holdings to 100,603 ETH, with the additional funds coming from the sale of 280 BTC and $172 million from its IPO. Subsequently, the company's stock price rose in response. SharpLink Gaming announced on Tuesday that it has increased its ETH holdings, bringing its total to over 205,000 ETH, and its stock price also rose accordingly. Both companies stated that they will stake all of their holdings, thereby alleviating the supply pressure of ETH in the market.

During an interview with CNBC on Tuesday, Joe Lubin, CEO of Consensys and Chairman of SharpLink, pointed out that as more and more applications are launched on its blockchain, the Ethereum treasury bond "is not only a great business but also crucial for achieving the supply and demand balance of ETH."

Ethereum Price Analysis: ETH Tests Triangle Resistance Level, Focus on $2,850 Resistance Level

FXStreet analyst Michael Ebiekutan stated that the Ethereum futures liquidation amount reached 143 million USD in the past 24 hours. According to Coinglass data, the total liquidation for longs and shorts amounted to 14 million USD and 129 million USD respectively.

Since receiving support near the $2,500 key level on Sunday (the convergence of the 200-day Simple Moving Average (SMA) and the 50-day Exponential Moving Average (EMA) strengthened this support), ETH has risen over 7%.

Therefore, ETH has broken through the upper boundary of a wider symmetrical triangle formation and is targeting the resistance level of $2,850. If ETH further breaks through this key resistance level (which has been in place since February 4), it could trigger a strong upward trend.

The downside is that if ETH faces rejection at $2,850, it may find support around $2,500.

The Relative Strength Index (RSI) is above neutral levels, while the Stochastic Oscillator (Stoch) has entered the overbought territory. This indicates that bullish momentum is dominant, but due to the overbought Stoch indicator, a pullback may occur in the short term.

(Source: Trading View)