- A bull flag formation drives the short-term corrective trend in the Ethereum price.
- Bit Digital Inc. plans to raise $100 million through a public offering of convertible senior notes due 2030.
- The momentum indicator RSI has risen to 46%, signaling increasing bullish sentiment in the price.
On Monday, the second-largest cryptocurrency by market cap, Ethereum, jumped over 1.8%, extending its recovery from last weekend. The buying pressure was triggered by a relief rally in the broader crypto market, but the Ethereum price gained additional momentum amid the increasing corporate adoption and ETH accumulation. The technical chart further supports this bullish narrative as a flag pattern emerges in the daily chart.
Bit Digital Announces $100 Million Convertible Notes Offering
Bit Digital, Inc. (Nasdaq: BTBT) has announced plans to raise capital via a public offering of convertible senior notes maturing in 2030 with a total of $100 million. The offering features a provision for underwriters to buy another $15 million of notes within 30 days for the purpose of absorbing over-allotments.
The notes will be unsecured obligations of the company and have a maturity date of October 1, 2030 (unless converted, redeemed, or repurchased prior to that date). Holders of the notes will be able to convert the notes into cash, common stock with a par value of $0.01, or a combination of cash and common stock at the discretion of the company. Other pricing elements, such as the interest rate and initial conversion rate, will be agreed upon at the time of pricing.
Funds from this offering will be used primarily for the acquisition of Ethereum, in line with the company’s continued digital assets focus. Additionally, the funds can be used to cover general corporate expenses, including potential investments, acquisitions, and other projects related to the cryptocurrency space.
Barclays, Cantor, and B Riley Securities are co-advising on the underwriting process for the transaction. The offering will be completed on the basis of an existing shelf registration on Form S-3, declared effective by the Securities and Exchange Commission on June 20, 2025.
The move is in line with Bit Digital’s approach to buying and managing digital assets. The offering structure is flexible to both the company and investors, as convertible notes give the investors upside potential through participation in equity in addition to fixed interest payments.
In other news, BitMine Immersion Technologies (NYSE: BMNR) bought 234,846 ETH over the past week, a purchase worth about $980 million. This new accumulation is another sign of institutional belief in Ethereum and points to a continued bullish market.
Ethereum Price Correction Halts A Major Breakdown Floor
On September 25th, the Ethereum price gave a bearish breakdown below the $4,000 psychological level, amid a wide market correction. However, the bear failed to sustain this level, and the coin price reverted immediately, trapping those who had rushed into the market.
With an intraday gain of 1.8%, the price gives an upside breakout from immediate resistance of $4,162, signaling a bullish shift in a short time frame. The post-breakout recovery could push the asset another 6.8% to challenge the key resistance trendline of a flag pattern at $4,500.
Over the past 6 weeks, the Ethereum price has witnessed a steady correction within the two parallel trend lines of the flat structure. Thus, a potential breakout from the overhead resistance will accelerate the bullish momentum and signal the continuation of the bullish pattern.
A post-breakout rally could push Ethereum price to an initial target of $5,400.
On the contrary, if the sellers continue to defend the overhead resistance trend line, the current correction could prolong into October.
