Ethereum treasury demand collapses: Will it delay ETH’s recovery to $4K?
Ethereum treasury demand has plummeted by 80%, raising concerns about ETH's sustained recovery toward $4,000.Summary
Demand for Ether from corporate treasury entities, part of the Digital Asset Treasury (DAT) trend, has collapsed by 80% in November compared to August's peak, signaling a structural decline in buying power, according to Bitwise data. Daily institutional buying, including DATs and ETFs, has shifted from accumulating 121,827 ETH per day in mid-August to selling 5,520 ETH daily currently, although total treasury purchases still exceed Ethereum's monthly supply of 80,000 ETH. This reduced demand, coupled with unrealized losses held by treasury companies, casts doubt on ETH's sustainability. Technically, Ether is trading around $3,077 and must break the crucial resistance zone between $3,000 and $3,200, which coincides with the 200-period SMA, to confirm a bullish reversal. A confirmed breakout above the falling wedge pattern at $3,000 targets a potential recovery toward $4,150.
(Source：Cointelegraph)