Ethereum News Today: DATs Sell Ethereum to Buy Shares, Deepening Price Collapse

Ethereum's price slump below $3,000 has triggered a wave of panic among digital asset treasuries (DATs), with firms like FG Nexus and ETHZilla offloading thousands of ether to fund share buybacks. The move underscores the growing fragility of the DAT sector, where stock prices have plummeted below the net asset value (NAV) of their crypto holdings, forcing companies to liquidate assets to shore up equity. FG Nexus, a major Ethereum treasury firm, sold 10,922 ETH-worth roughly $33 million at current prices to repurchase 3.4 million shares, or 8% of its outstanding float, at an average price of $3.45 per share, significantly below its reported NAV of $3.94. The firm also took on $10 million in debt to finance the buyback, signaling a shift in strategy as it abandons plans to raise $5 billion via a shelf offering to expand its Ethereum holdings.

The Ethereum sell-off has accelerated as technical indicators point to a bearish outlook. The cryptocurrency is now testing critical support at $2,850, with a break below that level potentially sending prices toward $2,300. CoinCodex's price prediction model forecasts a 10.13% rebound to $3,493.72 by Nov. 21, 2025, but the broader market sentiment remains bearish, with the Fear & Greed Index at an extreme fear reading of 10 and 26 of 33 indicators signaling downward pressure. Meanwhile, Ethereum's 200-week moving average at $2,450 has emerged as a key psychological barrier, with analysts warning that a sustained drop below $2,500 could erase a year's worth of gains and trigger further panic among DATs.

The crisis in the DAT sector has been exacerbated by weak demand for digital assets and prolonged dilution. FG Nexus's actions mirror those of ETHZilla, which sold $40 million in ETH in October to fund buybacks. Most DATs have seen their shares collapse by over 90%, with K33 attributing the turmoil to a saturated market and eroding investor confidence. The sell-off has also created a self-reinforcing cycle: as DATs offload ether to buy back shares, the increased supply pressures Ethereum's price, further devaluing their holdings and forcing more liquidations.

Market participants are now bracing for a potential wave of consolidation, with FG Nexus previously predicting that leading treasuries will acquire smaller firms to strengthen market share. BitMine, the largest Ethereum treasury, holds 3.56 million ETH, but its ability to weather the current downturn remains uncertain. For now, the focus remains on Ethereum's ability to hold key support levels, with bulls hoping for a rebound toward $3,100 to reignite optimism. However, with the RSI and Stochastic Oscillator entering oversold territory and the MACD indicator maintaining a bearish bias, the path to recovery appears fraught with challenges.