The price of Ether (ETH) was trading at $3,077, up 17% from its local lows of $2,620 reached on November 21. However, reduced Treasury purchases and overall resistance delayed the sustained recovery towards $4,000.
Key takeaways:
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Ether treasury demand has plummeted by 80%, raising concerns about its sustainability.
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Breaking the $3,200 resistance is crucial to confirm the recovery.
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Ether falling wedge breakout targets $4,150 ETH if key support levels hold.
Ethereum treasuries have plummeted by 80%
Ether has seen a sharp drop in demand from corporate treasury entities that had previously accumulated ETH as part of the “DAT” trend.
Data from Bitwise reveals that digital asset treasury (DAT) firms purchased just 370,000 ETH in November, down 81% from the August peak of 1.97 million ETH.
Related: Digital Asset Treasury Boom Stalls as Flows Fall to $1.3 Billion and Stocks Fall
Bitwise Senior Research Associate Max Shannon warns that the structural supply for Ether will disappear if Treasury bond purchases continue to decline while supply remains constant.
“As more alternatives emerge, the same pool of capital cannot sustain demand.”
The ETH DAT bear continues. pic.twitter.com/5YhOwqTICd
—Max Shannon (@cornMaxy) December 2, 2025
This decline is not simply a slowdown, but rather reveals a structural decline driven by declining mNAV levels and disappearing purchasing power among smaller companies.
Additional data from Capriole Investments reveals that daily institutional purchases, including DATs and ETFs, have fallen from a high of 121,827 ETH on August 15. In fact, they are now being sold at a rate of 5,520 ETH per day.
Raising capital is becoming a problem and leaves only a handful of big players active. One of them is Bitmine, led by Wall Street strategist Tom Lee, which continues to add ETH; However, monthly and weekly volumes have decreased, according to CryptoQuant analyst Maartunn.
Yes, Bitmine continues to add new Ethereum to its treasury, but the monthly USD values have been decreasing:
July 2025: $2.6 billion
August 2025: $4.3 billion
September 2025: $3.4 billion
October 2025: $2.3 billion
November 2025: $892 million pic.twitter.com/w1k3FdXIXy– Maartunn (@JA_Maartun) December 3, 2025
While treasury purchases still exceed Ethereum’s monthly supply of approximately 80,000 ETH, the shrinking pool of active buyers indicates that the DAT model is collapsing.
As Cointelegraph reported, Ether treasury companies are racking up millions of dollars in unrealized losses, raising concerns about their sustainability.
Ether faces resistance above $3,200
The latest rally in ETH price has seen it reclaim a key support area around $3,080, where the 50-week and 100-week SMAs appear to be converging, according to data from Cointelegraph Markets Pro and TradingView.
A daily candle close above this level would be a bullish signal that buyers are back in control.
If this level holds, “then we are looking forward to an improvement,” MN Capital founder Michael van de Poppe said in a recent X post, adding:
“On the upside, $3,000 to $3,100 remains a crucial resistance zone to overcome.”
Note that this resistance area coincides with the 200-period SMA, which has contained the price since October 28.
This is where investors acquired around 5.1 million ETH, according to Glassnode’s cost distribution heat map.
As Cointelegraph reported, a close above the 20-day EMA at $3,100 would suggest that selling pressure is easing, clearing the way for a rise towards the 50-day SMA around $3,500.
Ether Falling Wedge Breakout Targets $4,150
The daily chart shows the ETH/USD pair breaking above the upper trend line of a falling wedge pattern at $3,000.
A daily close above this level would confirm the breakout, opening the way for Ether to rally towards the wedge target at $4,150, representing a 36% increase from the current price.
This bullish target aligns with ETH price predictions made by multiple analysts, as valuation models suggest the altcoin is significantly “undervalued.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision. While we strive to provide accurate and timely information, Cointelegraph does not guarantee the accuracy, completeness or reliability of the information contained in this article. This article may contain forward-looking statements that are subject to risks and uncertainties. Cointelegraph will not be liable for any loss or damage arising from your reliance on this information.
