Ethereum: 3 Reasons Why ETH May Reach $4.4K Soon

Ethereum is at a crossroads, balancing between significant accumulation and low demand for its tokens. As of the latest update, ETH was trading at approximately $3,092, with minimal fluctuation over the past 24 hours. This article analyzes potential developments for Ethereum in the first quarter of 2026.

Key Takeaways

SharpLink Gaming has heavily invested in ETH staking, accumulating significant rewards.
There exists substantial short leverage pressure at the $3.4K mark that may trigger a price surge.
Current low transaction fees imply either quiet accumulation by whales or a downturn in interest.

Ethereum Image

SharpLink Gaming's Commitment to ETH Staking

Institutions are increasingly leveraging ETH's staking capabilities. Notably, SharpLink Gaming (SBET), which is the second-largest holder of ETH, has fully committed to this strategy. Over the past seven months, SBET has accrued staking rewards totaling 10,657 ETH, valued at around $33 million. Just last week, they added another 438 ETH, bringing their total holdings to 864,840 ETH.

SharpLink Earnings Source: SharpLink

Additionally, SBET has re-staked $170 million in ETH on the Linea network. Despite the advantages of ETH staking, SBET’s stock remains stagnant, trading at $10 since mid-July. Overall, these developments create a positive outlook for ETH.

Short Leverage Pressure Near $3.4K

Regarding liquidity, leveraged long positions in Ethereum have reached nearly $7 billion at the $2,730 level, facilitating the price's rise past $3,000. However, a lack of alignment across the crypto market hindered sustained price increases.

ETH Short Leverage Source: Coinglass

On the other hand, there is about $3 billion in Ethereum shorts accumulated at the $3,400 level. If prices reach this threshold, it may induce a short squeeze, potentially driving further price growth.

Whale Activity: Accumulation or Decreased Interest?

Despite positive signals, total transaction fees tell a different story. Fees are currently very low, suggesting reduced demand. Typically, lower fees indicate a quieter network. However, market sentiment has been gradually changing, especially since the beginning of the year.

Network Activity Source: Alphractal

This silence could signify one of two scenarios: either whales are accumulating Ethereum discreetly, or enthusiasm for the asset is waning. Data from HyperLiquid DEX appears to support the former. A whale recently opened a $62 million position in ETH with 3x leverage, already yielding a profit of over $29,000.

Whale Position Source: Hyperbot

Moreover, another whale placed a bet of $104.5 million in ETH, utilizing 15x leverage, while also engaging with Bitcoin (BTC), Solana (SOL), and Ripple (XRP). Notably, Ethereum's price action has broken out of a multi-month descending channel, aligning with a more bullish outlook. Analyst NekoZ has set a target of $4,400, contingent on the price retesting former resistance as support.

Conclusion

While optimism surrounds Ethereum, any breakout towards the $4,400 mark would not guarantee immediate price increases. Instead, it might serve as an indicator of potential long-term growth in the Ethereum market.

With these factors in play, the coming weeks may unveil critical developments in Ethereum's trajectory towards $4.4K.