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Ethereum Latest Updates: Major Institutions Support Ethereum's Supercycle, While Technical Experts Raise Concerns

Ethereum Latest Updates: Major Institutions Support Ethereum's Supercycle, While Technical Experts Raise Concerns

Bitget-RWA2025/11/16 17:34
By:Bitget-RWA

- Tom Lee predicts Ethereum's "supercycle" driven by institutional adoption and DeFi growth, sparking market debate over valuation risks. - SharpLink Gaming's 1,100% revenue surge and $200M ETH allocation to Linea highlight bullish institutional strategies amid price volatility. - Technical analysts warn ETH's $3,500 support is critical after breaking below key channels, with $37B daily volume reflecting mixed momentum. - Growing institutional demand contrasts with critics' concerns over centralization ris

Tom Lee, chief strategist at L2 Digital Asset Research, believes Ethereum (ETH) is on the verge of entering a "supercycle" similar to Bitcoin's (BTC) recent rally. This outlook has ignited discussion among investors, with some pointing to growing institutional involvement and strong technical trends as driving forces, while skeptics caution about potential overvaluation and underlying vulnerabilities.

SharpLink Gaming, a prominent

treasury investor, has fueled further optimism. The company announced a staggering 1,100% year-over-year revenue jump for Q3 2025, attributing the growth to its ETH staking and yield-focused strategies. CEO Joseph Chalom emphasized the firm's $200 million ETH allocation to Consensys' Linea platform, aiming to leverage the expansion of Ethereum's decentralized finance (DeFi) sector.
Ethereum Latest Updates: Major Institutions Support Ethereum's Supercycle, While Technical Experts Raise Concerns image 0
"We hold a leading position as the institutional supercycle gains momentum," he said, highlighting that the company's ETH assets had .

Despite overall market turbulence, Ethereum's price has demonstrated strength. After falling to $3,373 in late October, ETH bounced back to $3,533, with a 24-hour trading volume reaching $37 billion. Still, technical experts urge caution. A recent Seeking Alpha review

, setting lower highs after failing to break resistance. "The $3,500 level is pivotal," wrote Elior Manier, warning that a decisive drop beneath this point could lead to further losses .

Interest from institutions in Ethereum remains robust. Hyperion DeFi, a publicly listed blockchain company,

, supported by the HYPE token's role in reducing trading fees. Meanwhile, Harvard University boosted its stake in BlackRock's Trust ETF to $442 million, reflecting the growing integration of crypto assets in mainstream portfolios . Binance also , indicating accumulation ahead of possible price rebounds.

Nonetheless, doubts remain. Technical analysis from Seeking Alpha pointed out that Ethereum's 32% slide from its August high to $3,500 signals waning speculative enthusiasm. "The best opportunities arise when few are paying attention," Manier commented, but he also underscored the value of dollar-cost averaging and disciplined risk controls for those investing long-term

. Detractors also point to Ethereum's dependence on centralized infrastructure, with co-founder Vitalik Buterin .

This ongoing debate reflects broader trends in the market. For example, MicroStrategy acquired an additional 884 BTC in Q3, raising its total to $65 billion, while Bitcoin ETFs experienced $2.33 billion in outflows in November, marking the second-largest monthly withdrawal on record

. On the other hand, Tether's reported $1 billion investment in a German robotics company highlights the expanding applications of crypto beyond the financial sector .

As Ethereum's landscape continues to develop, opinions remain split. Supporters cite institutional treasury adoption, DeFi advancements, and clearer regulations as positive factors. Critics, meanwhile, urge vigilance in light of high valuations and ongoing security issues, such as

.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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