Ethereum News Today: DATs Sell Ether to Prop Stocks, Sparking Price Volatility and Investor Anxiety

Ethereum's price faced renewed pressure as FG Nexus, a digital asset treasury firm focused on Ethereum, sold nearly 11,000 ETH to fund a share buyback program, exacerbating market concerns over crypto treasury firms liquidating holdings to prop up stock prices. The sale, which generated approximately $33 million at current prices, was combined with $10 million in borrowed funds to repurchase 3.4 million shares-8% of the company's float-at an average price of $3.45, significantly below its net asset value (NAV) of $3.94 per share. The move sent ether sliding nearly 2% shortly after the announcement, though it later rebounded to trade around $3,033.72.

The broader market context highlights growing instability in the digital asset treasury (DAT) sector, where firms are increasingly forced to sell crypto assets to fund buybacks as their stock prices trade far below the NAV of their holdings. FG Nexus now holds 40,000 ETH and $37 million in cash and stablecoins, but its debt has risen to $11.9 million. Similar pressure has been seen across the industry, with firms like ETHZilla previously offloading $40 million in tokens for the same purpose. Analysts warn that such activity could deepen selling pressure on ether as more DATs follow suit to stabilize their equity valuations.

Technical indicators suggest ether is testing critical support levels. The $2,850 threshold has emerged as a focal point, with on-chain data showing strong accumulation by whale holders (wallets with over 10,000 ETH) and declining retail selling pressure. Ethereum's price has bounced above $3,000 but remains below key moving averages, including the 200-day EMA at $3,554. A breakdown below $2,800 could trigger further declines toward $2,700, while a sustained rebound above the 50-day EMA at $3,655 might signal a short-term recovery.

Market sentiment received a brief boost with BlackRock's filing for a staked Ethereum ETF, which could enhance demand for ether by institutional investors. The move aligns with broader industry trends, including the launch of spot XRP ETFs and growing institutional adoption of crypto products. However, Ethereum's path to recovery remains clouded by macroeconomic uncertainty, particularly after the Federal Reserve's recent minutes hinted at a potential delay in rate cuts.

FG Nexus's strategic shift toward Ethereum treasury management and real-world asset (RWA) tokenization has not yet translated to investor confidence. While the firm aims to become the largest ETH holder globally, its third-quarter financials revealed a net loss of $7.7 million, driven by losses from equity holdings and dividend obligations. The company's balance sheet shows total ETH holdings of 40,005 as of November 19, 2025, but its debt-to-equity ratio has risen amid aggressive buybacks.

As ether navigates a precarious technical setup, the interplay between corporate sell-offs and institutional demand will likely dictate its near-term trajectory. With key support zones in focus and regulatory developments like staking ETFs emerging, the market remains poised for volatility.