Ethereum Breaks $3,900 as ETH Treasury Demand Heats Up, Eyes $4,000

Ethereum surged past $3,900 on Friday, driven by a wave of fresh institutional interest and record-breaking flows into ETH-focused treasuries and ETFs.

It briefly reached $3,952 before easing to around $3,909 by 2:20 am ET. Analysts believe a test of the $4,000 mark could be imminent.

The rally follows a $200m stock offering from SharpLink Gaming, which said it will use the proceeds to expand its Ethereum treasury. Once deployed, the new ETH reserves could push SharpLink’s holdings to more than $2b, making it one of the largest corporate holders of the asset.

The company revealed that four institutional investors have committed to buying shares in an at-the-market offering priced at $19.50. SharpLink’s existing ETH treasury stands at over 521,000 tokens, currently worth more than $2b, according to data from BuyBitcoinWorldwide.

NEW: SharpLink raises $200M in a direct offering led by four global institutional investors at $19.50/share

This capital will be used to expand our Ethereum treasury, expected to surpass $2B upon full deployment

At SharpLink, our mission is simple:

Accumulate ETH. Stake ETH.… pic.twitter.com/ABv7CH9Cqt

Additionally, Fundamental Global also filed a $5b shelf registration with the SEC to build its own ETH-focused treasury. The firm joins a growing list of companies betting on Ethereum as a balance sheet asset.

Bitmine Immersion Technologies remains the largest public holder, with 833,133 ETH valued at $3.27b. Coinbase holds around 136,000 ETH, while other US-based firms like Bit Digital and BTCS round out the top five. In total, 17 public companies now collectively hold more than 1.74m ETH, valued at nearly $6.9b.

Ethereum co-founder Vitalik Buterin has welcomed this trend with cautious optimism. On a recent podcast, he said ETH treasuries offer “valuable services” by giving investors more access and flexibility. However, he warned that aggressive leverage could lead to severe liquidations if not managed responsibly.

“If you woke me up three years from now and told me that treasuries led to the downfall of ETH, then, of course, my guess for why would basically be that somehow they turned it into an overleveraged game,” Buterin said.

Are ETH Treasuries good for Ethereum?@VitalikButerin thinks they can be:

“ETH just being an asset that companies can have as part of their treasury is good and valuable… giving people more options is good.”

But he also issues a warning:

“If you woke me up 3 years from now… pic.twitter.com/W55oUD7Lke

At the same time, US-listed ETH ETFs have seen record inflows. SoSoValue data shows that cumulative net inflows have hit $9.35b across funds from issuers like BlackRock, Grayscale, and Fidelity. The BlackRock-backed ETHA ETF alone absorbed over $100m on Thursday, helping push its net assets past $11b.

Grayscale’s main ETH trust, now with $25.1b in net assets, recorded a daily price gain of over 5%. Bitwise, VanEck and Franklin also saw modest but steady inflows as investor appetite grew.

Riya Sehgal, a research analyst at Delta Exchange, noted that the high trading volume indicates solid buying interest, driving the price above $3,900.

“With $222.3 million in ETF inflows and Ethereum dominance climbing above 12%, the market is clearly seeing capital rotation from Bitcoin into ETH,” she told Cryptonews. “As long as Ethereum holds above $3,840, the short-term outlook remains bullish, with $4,000–4,050 as the next potential target zone.”

With ETF flows accelerating and corporate treasuries scaling up, the market now appears primed for a strong finish to the quarter.

Traders are watching the $4,000 resistance level as the next key milestone in Ethereum’s momentum-driven run.

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