Ethereum Price Drops: Is Sharplink to Blame?
2025-08-18
Ethereum faced fresh volatility in mid-August 2025 after SharpLink Gaming reported a $103 million quarterly net loss.
The announcement dragged ETH below the $4,500 level, triggering widespread liquidations across futures markets and sparking debate about whether the downturn was fueled by broader market exhaustion or specific corporate events.
Despite its pullback, Ethereum remains up more than 20% over the past month, supported by strong institutional inflows and growth across its Layer 2 ecosystem.
The question for traders is whether ETH can hold its bullish channel or if SharpLink’s weak earnings could signal further pressure ahead.
Key Takeaways
- Ethereum price slipped under $4,500 after SharpLink Gaming’s $103M loss
- Over $169M in futures liquidations added to selling pressure
- ETH remains up 6.2% weekly and 23% monthly
- Treasury firms now hold more than 2.7M ETH, led by BitMine Immersion
- Support rests between $4,350–$4,400, resistance near $4,785
Sharplink’s Earnings and Market Impact
SharpLink Gaming has positioned itself as an Ethereum-heavy treasury firm, accumulating more than 728,000 ETH worth $3.2 billion. Nearly all of these holdings are deployed in staking, which generated more than 1,300 ETH in validator rewards.
Yet, the company’s Q2 report showed a $103 million net loss, driven largely by an $87.8 million impairment charge tied to liquid-staked ETH. Under U.S. accounting rules, assets must be marked at their lowest quarterly price, which for ETH was $2,300.
Although SharpLink hasn’t sold or redeemed its holdings, revenue from other business lines dropped 30% year-over-year, weighing heavily on sentiment. Its stock declined 15% to close at $19.85.
Read Also: Ethereum to Surge? $22K Target & High Mining Returns
Technical Analysis: ETH Price Levels
Ethereum failed to retest $4,700 resistance, retreating to $4,468 at press time. Technicals suggest momentum is cooling:
- RSI and Stochastic indicators have retreated from overbought zones, signaling short-term exhaustion
- Key support sits between $4,350–$4,400, aligned with the 50-day moving averages
- Resistance levels lie at $4,785, with a potential retest of the $4,891 all-time high if support holds
- A breakdown below $4,170 could open the door toward $3,950 or even $3,500
Analyst Michaël van de Poppe noted that ETH’s rejection at resistance may lead to a period of consolidation, which could build “stamina” for the next upward leg.
Institutional Flows Offset Weakness
Despite SharpLink’s earnings miss, Ethereum continues to see major institutional demand. ETH-focused exchange-traded funds (ETFs) attracted more than $5.4 billion in inflows in recent months, reinforcing investor appetite.
Treasury firms collectively hold over 2.7 million ETH, suggesting corporate adoption is deepening even amid short-term turbulence. Meanwhile, Ethereum’s fundamentals remain strong, with Arbitrum, Optimism, and zkSync driving lower costs and higher throughput.
Read Also: Will ETH Smash $5K After Bullish Rebound?
Final Thoughts
Ethereum’s recent drop highlights how corporate reports can ripple across markets, especially when linked to large token treasuries.
While SharpLink’s loss weighed on sentiment, ETH’s broader story remains intact. With strong institutional inflows, thriving Layer 2 activity, and robust treasury demand, Ethereum may consolidate before attempting another push toward record highs.
For traders, the $4,350–$4,400 support range will be key to watch. Holding that level could set up another rally, while failure may trigger deeper corrections.
Read Also: Ethereum Holds Above $4300 as Whales Buy Big
FAQ
Why did Ethereum’s price drop below $4,500?
Ethereum fell after SharpLink Gaming reported a $103M quarterly loss, which combined with resistance rejection and futures liquidations to pressure the market.
How much ETH does SharpLink hold?
SharpLink holds over 728,000 ETH worth about $3.2B, most of it staked for validator rewards.
What are Ethereum’s key support and resistance levels?
Support lies around $4,350–$4,400, while resistance is near $4,785, with potential retests of the $4,891 all-time high.
Do institutional investors still support Ethereum?
Yes. ETH ETFs have attracted $5.4B in inflows recently, and treasury firms collectively hold over 2.7M ETH.
Is Ethereum still in a bullish trend?
Yes, as long as ETH holds above $4,350, the broader bullish channel remains intact despite short-term pullbacks.
Disclaimer: The content of this article does not constitute financial or investment advice.
