Standard Chartered’s recent statements about Ethereum have reignited interest in non-ETF investment paths, just as the network contends with record sell-offs.
Institutional investors are beginning to lean towards treasury firms holding ETH directly, favouring them over spot ETFs. Meanwhile, Ethereum’s on-chain activity is near an all-time high, with stablecoins, Uniswap, and meme coins fuelling traffic.
But, price movement remains constrained, caught between sell-side pressure and strong long-term holder conviction. These contrasting dynamics have left Ethereum at a turning point, raising questions about which direction the asset might take next.
Why Treasury Firms Are Gaining Favour Over Spot ETFs
According to Standard Chartered’s Head of Digital Assets Research, Geoff Kendrick, Ethereum treasury companies are emerging as the more attractive alternative to US spot ETFs.
His argument is based on several factors, including better net asset value ratios, regulatory flexibility, and direct exposure to Ethereum’s price movements and staking rewards.
One firm drawing attention is SharpLink Gaming, which is listed on NASDAQ under the ticker symbol SBET. The company has steadily built up its Ethereum holdings to over 255,000 ETH.
In just the past month, it reportedly added 50,000 ETH, part of a broader trend that saw treasury companies collectively acquire 545,000 ETH.
Kendrick pointed out that these treasury firms now hold over 2 million ETH, with projections suggesting an additional 10 million ETH could be accumulated in the near term.
A key metric Kendrick focused on is the NAV multiple, which measures the company’s market cap about the value of ETH it holds. SBET, for example, trades just above a NAV multiple of 1.0, indicating that its valuation is closely aligned with its underlying ETH assets.
For investors, this suggests less premium pricing than some ETFs, where the NAV multiple can be significantly higher.
Crucially, Kendrick believes that these firms offer regulatory advantages. While ETFs remain subject to ongoing approval processes and trading limitations, ETH-holding companies are able to function with fewer constraints.
This regulatory arbitrage gives institutional investors more flexibility, especially when combining ETH accumulation with staking rewards and increasing ETH per share.
Interestingly, this endorsement from Standard Chartered comes at a time when US spot Ethereum ETFs are showing signs of volatility.
After a strong July with $5.4 billion in inflows, August began with significant outflows. On August 1 and 4, the ETFs experienced combined net outflows of over $600 million. BlackRock’s ETHA alone accounted for $375 million on a single day.
Despite a partial rebound on August 5, the inconsistencies have cast doubt on the long-term sustainability of ETFs as the primary gateway to Ethereum exposure. Meanwhile, treasury firms have quietly continued accumulating ETH, undeterred by market sentiment.
With a growing list of public companies such as Coinbase, BitMine, and Bit Digital holding over 1 million ETH collectively, the landscape is shifting. Investors are clearly exploring more direct, efficient, and flexible ways to access Ethereum’s value.
Can Ethereum Withstand the Sell Pressure?
While institutional appetite for Ethereum continues, the market is facing an intense wave of selling pressure.
On August 6, Ethereum’s Net Taker Volume dropped to minus $418.8 million, its second-largest daily sell-side imbalance on record. Over 116,000 more ETH were sold than bought in a single day, raising alarm across trading desks.
Analyst Maartun noted that market orders, which reflect urgency more than discipline, have been leaning heavily towards the sell side. This behaviour suggests a rise in short-term panic or a loss of confidence, especially as the price has failed to reclaim the $3,950 resistance level.
Technically, Ethereum recently completed a cup and handle pattern, a structure often associated with bullish continuation. However, after failing to break above the neckline resistance, it now trades within a descending channel.
The RSI remains neutral, so unless bulls push the price above $3,950 soon, the setup could lose credibility, potentially opening the door to further downside movement.
Despite this, Ethereum’s on-chain data paints a more encouraging picture. Daily transactions reached 1.87 million, closing in on the all-time high of 1.96 million recorded in January 2024.
This growth is largely driven by stablecoin transactions, particularly from USDC and Tether, alongside increased activity on decentralised exchange Uniswap.
Regulatory developments have also played a role. The passage of the GENIUS Act in the US has created a clearer legal framework for stablecoins, giving market participants more confidence.
Combined with multiple ETF approvals and the rise of meme coin trading on layer-2 networks, Ethereum’s network activity has surged.
New and active address counts are also climbing. IntoTheBlock data shows a 29.94% increase in new addresses and a 3.17% rise in active ones. Historically, these trends signal strong user engagement, which often translates to price support in the medium term.
Another supporting factor is the behaviour of long-term holders. The MVRV Long/Short Difference remains above 12.36%, suggesting that many of these investors are still sitting on meaningful unrealised profits.
While the NVT Ratio indicates that Ethereum might be overvalued in the short term, the sustained confidence of long-term holders provides a layer of resilience.
Nevertheless, Ethereum is at a crucial junction. The market is split between those exiting their positions and those betting on continued growth.
If the price can reclaim $3,955, it would validate the bullish structure and potentially set the stage for further appreciation. But if resistance holds, a period of consolidation or further decline could follow.
The coming days will be telling. With SBET’s earnings report due on August 15 and transaction volumes on the rise, Ethereum’s fundamentals remain strong.
Yet, market sentiment is fragile. A balance between renewed confidence and cautious positioning will determine whether ETH can maintain its current support and push higher.
Conclusion
Ethereum finds itself at a crossroads. On one hand, Standard Chartered’s support for treasury firms over ETFs has shifted the conversation around institutional ETH exposure.
On the other hand, the network is dealing with historic sell pressure and unresolved price resistance. Still, the surge in on-chain activity and strong commitment from long-term holders suggest the story is far from over.
As investors look ahead to key reports and potential breakouts, Ethereum’s resilience will be tested. Whether the bulls regain control or a further retracement follows, one thing is certain which is that the next move will be critical.