Ether's (ETH) price is currently trading at $3,077, showing a 17% increase from its recent low of $2,620 on November 21. Despite this recovery, reduced buying from treasuries and overhead resistance are hindering a sustained push towards the $4,000 mark.
Several key factors are influencing Ether's price trajectory:
- •Ether treasury demand has experienced an 80% decline, raising concerns about its long-term sustainability.
- •A critical resistance level at $3,200 needs to be broken to confirm a sustained recovery.
- •A breakout from a falling wedge pattern on Ether's chart suggests a potential target of $4,150, provided key support levels remain intact.
Ethereum Treasuries Experience Significant Decline
Ether has witnessed a sharp drop in demand from corporate treasury entities that were previously accumulating ETH as part of the "DAT" trend. Data from Bitwise indicates that digital asset treasury (DAT) companies purchased only 370,000 ETH in November. This represents an 81% decrease compared to the peak of 1.97 million ETH recorded in August.
Max Shannon, Senior Research Associate at Bitwise, has cautioned that the structural demand for Ether could diminish if treasury buying continues its downward trend while the supply remains constant. He noted, "As more alternatives emerge, the same pool of capital cannot sustain demand."
ETH DAT bear continues. pic.twitter.com/5YhOwqTICd
— Max Shannon (@cornMaxy) December 2, 2025
This downturn is not merely a slowdown but signifies a structural decline driven by shrinking net asset value (mNAV) levels and diminished purchasing power among smaller firms. Further data from Capriole Investments reveals that daily institutional buying, encompassing both DATs and ETFs, has fallen from a high of 121,827 ETH on August 15. Currently, these entities are selling ETH at a rate of 5,520 ETH per day.
The ability to raise capital has become increasingly challenging, leaving only a select few large players actively participating. While Bitmine, led by Wall Street strategist Tom Lee, continues to acquire ETH, monthly and weekly volumes have seen a decline, according to CryptoQuant analyst Maartunn.
Yes, Bitmine continues to add new Ethereum to its treasury, but the monthly USD values have been declining:
— Maartunn (@JA_Maartun) December 3, 2025
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 outpace Ether's monthly supply of approximately 80,000 ETH, the shrinking pool of active buyers indicates a potential collapse of the DAT model. As previously reported, Ether treasury companies are holding millions of dollars in unrealized losses, raising significant concerns about their financial sustainability.
Ether Faces Resistance Above $3,200
The recent recovery in ETH's price has seen it regain a crucial support area around $3,080. This level is significant as it appears to be where the 50-week and 100-week simple moving averages (SMAs) converge, according to data from CoinTelegraph Markets Pro and TradingView. A daily candlestick close above this threshold would serve as a bullish indicator, suggesting that buyers are regaining control of the market.
Michael van de Poppe, founder of MN Capital, stated in a recent X post that if this level holds, "then we’re eager for an upside." He further elaborated that "$3,000-3,100 remains a crucial resistance zone to break through" on the upside.
This resistance zone aligns with the 200-period SMA, which has acted as a ceiling for Ether's price since October 28. Data from Glassnode's cost basis distribution heatmap indicates that investors acquired a substantial amount, approximately 5.1 million ETH, around this price level.
A close above the 20-day exponential moving average (EMA) at $3,100 would signal a reduction in selling pressure, potentially paving the way for a climb towards the 50-day SMA, which is currently positioned around $3,500.
Ether's Falling Wedge Breakout Targets $4,150
The daily chart analysis reveals that the ETH/USD pair has broken above the upper trendline of a falling wedge pattern, which was situated at the $3,000 level. A confirmed daily close above this price point would validate the breakout. This breakout could lead to Ether's price advancing towards the pattern's target of $4,150, representing a potential 36% increase from its current trading price.
This projected upside target aligns with price predictions from multiple analysts, who suggest that Ether is currently undervalued based on various valuation models.