Ethereum Treasury Demand Collapses: Will It Delay Eth’s Recovery To...

Collapsed Ethereum treasury demand and stiff overhead resistance between $3,100 and $3,200 stood in the way of Ether’s recovery to $4,000.

Ether’s (ETH) price traded at $3,077, up 17% above its local lows of $2,620 reached on Nov. 21. However, reduced treasury buying and overhead resistance delayed sustained recovery toward $4,000.

Ether treasury demand has collapsed 80%, raising concerns about their sustainability.

Breaking the resistance at $3,200 is crucial for confirming the recovery.

Ether’s falling wedge breakout targets $4,150 ETH if key support levels hold.

Ether has seen a steep decline 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) companies purchased just 370,000 ETH in November, down 81% from August’s peak of 1.97 million ETH.

Related: Digital asset treasury boom stalls as flows drop to $1.3B and stocks tumble

Bitwise’s Senior Research Associate, Max Shannon, warns that the structural bid for Ether will disappear if treasury buying continues to decline while supply remains constant.

This drop is not simply a slowdown, but reveals a structural decline driven by shrinking mNAV levels and vanishing purchasing power among smaller firms.

Source: CoinTelegraph