ETHZilla Bets $100M on EtherFi Amid Ethereum Bullish Wedge
ETHZilla Corporation has committed $100 million worth of ETH to liquid restaking protocol EtherFi, marking its first large-scale institutional entry into DeFi staking. Holding over 102,000 ETH (~$456 million), ETHZilla aims to diversify its treasury and bolster Ethereum network security while retaining liquidity. The investment underscores growing confidence in Ethereum’s upgraded scalability post-Dencun and Pectra updates and is expected to accelerate restaking adoption by other institutions. Technical analysis shows Ethereum’s ETH/USD 4-hour chart forming a rising wedge pattern, with dynamic support at the 50-period EMA near $4,430 and accumulation indicated by volume spikes. A confirmed breakout above the wedge could target $6,756. However, short-term momentum indicators remain cautious: RSI sits at 39.0 below the 50 midline, MACD is negative with the MACD line under the signal line, and the Balance of Power reads -0.76, signaling seller dominance. Traders should watch for sustained RSI and MACD crossovers above neutral levels to validate a bullish breakout.
Bullish
ETHZilla’s $100 million allocation to EtherFi signals strong institutional confidence in Ethereum’s restaking potential and network security, often preceding upward price pressure as capital influx boosts market sentiment. Combined with a rising wedge pattern—a bullish continuation setup—this development positions Ethereum for a potential breakout toward $6,756. While short-term RSI, MACD, and BoP indicators suggest consolidation and caution, historical precedents such as institutional staking commitments by firms like Grayscale and Fireblocks have correlated with sustained ETH price advances. Traders may see this as a bullish catalyst for both short-term volatility spikes and longer-term uptrend reinforcement, provided momentum indicators confirm a breakout.