The price of ETH is currently trading at $3,077, up 17% from the low of $2,620 reached on November 21. However, a significant decrease in treasury buying demand and resistance levels above are hindering its sustained recovery towards $4,000.
Key Points:
ETH treasury demand has plummeted by 80%, raising serious concerns about its sustainability in the market.
Breaking through the $3,200 resistance level is crucial for confirming a price rebound.
The descending wedge breakout pattern for ETH targets $4,150, provided that key support levels can hold.
Previously, some corporate finance departments had accumulated a large amount of ETH as part of the "DAT" trend, but now these companies have sharply reduced their demand for Ethereum.
Data from Bitwise shows that digital asset treasury (DAT) companies purchased only 370,000 ETH in November, a staggering 81% drop from the peak of 1.97 million ETH in August.
Bitwise senior researcher Max Shannon noted, "If treasury purchases continue to decline while supply remains unchanged, the structural buying pressure for ETH will disappear."
ETH DAT bear continues. pic.twitter.com/5YhOwqTICd
This decline is not just a simple slowdown; it reveals a structural recession driven by reduced mNAV levels and the disappearance of purchasing power from smaller companies.
Further data from Capriole Investments indicates that the average daily institutional purchases, including DAT and ETFs, have significantly dropped from a peak of 121,827 ETH on August 15. In fact, they are now net selling at a rate of 5,520 ETH per day.
Fundraising is becoming a prominent issue, with only a few large participants remaining active. One of them is Bitmine, led by Wall Street strategist Tom Lee, which continues to accumulate ETH; however, according to CryptoQuant analyst Maartunn, its monthly and weekly trading volumes have noticeably declined.
Yes, Bitmine continues to add new Ethereum to its treasury, but the monthly USD values have been declining: July 2025: $2.6B August 2025: $4.3B September 2025: $3.4B October 2025: $2.3B November 2025: $892M pic.twitter.com/w1k3FdXIXy
Although treasury purchases still exceed the monthly supply of about 80,000 ETH, the continuously narrowing range of active buyers clearly indicates that the DAT model is collapsing.
According to Cointelegraph, Ethereum treasury companies are currently facing millions of dollars in unrealized losses, further exacerbating market concerns about their long-term sustainability.
Data from Cointelegraph Markets Pro and TradingView shows that the latest rebound in ETH price has brought it back to around the key support area of $3,080, which is the convergence point of the 50-week and 100-week simple moving averages (SMA).
If the daily chart can close above this level, it will be a positive signal for buyers to regain control of the market.
Michael van de Poppe, founder of MN Capital, pointed out in a recent post on the X platform that if this level can hold, "then we will expect an upward trend." He added:
It is worth noting that this resistance area coincides with the 200-period SMA, which has been suppressing the price since October 28.
According to Glassnode's cost basis distribution heatmap, investors have purchased approximately 5.1 million ETH in this area.
As previously reported by Cointelegraph, if the price can close above the 20-day exponential moving average (EMA) of $3,100, it will indicate that selling pressure is weakening, paving the way for a climb towards the 50-day SMA around the $3,500 area.
The daily chart shows that the ETH/USD trading pair has broken above the upper trend line of the descending wedge pattern at $3,000.
If the daily candle can close above this level, it will confirm the validity of this breakout, opening the path for ETH to rise towards the wedge target of $4,150, which represents a 36% increase from the current price.
This upward target aligns with the ETH price predictions of several market analysts, with various valuation models indicating that this altcoin is currently "severely undervalued."
Related: Cryptocurrency asset reserves lead to a market rebound after a volatile start in December
Original: “Ethereum (ETH) Treasury Demand Plummets: Will This Delay ETH's Return to $4,000?”
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