Ethereum Updates: DATs' Repurchasing of Shares Triggers ETH Sell-Offs, Intensifying the Bearish Trend

Ethereum is under increasing strain as

, worth about $33 million, to finance a stock repurchase initiative. This decision, revealed during a broader downturn in digital asset treasury (DAT) equities, highlights the industry's ongoing difficulties as cryptocurrency values fluctuate and company treasuries contend with shrinking net asset values (NAVs) . disposed of the to buy back 3.4 million shares, representing 8% of its total shares in circulation, , which is well below its stated NAV of $3.94. The company additionally to speed up the buyback process, signaling a growing dependence on borrowing within the DAT industry.

This wave of selling follows a comparable move by ETHZilla in October, when it

to bolster its share price. Such maneuvers reveal a concerning pattern: DATs, which collectively oversee more than $42.7 billion in crypto assets, to support their stock prices as shares continue to trade at deep discounts to NAV. FG Nexus, for example, has seen its stock of $38.30, ending Thursday at $2.41. The firm now retains 40,005 ETH and $37 million in liquid assets, but its liabilities have climbed to $11.9 million.

The effects are being felt across the market. Ethereum's value dropped to $2,860, challenging key support after failing to break back above $3,100. Analysts point to ongoing DAT sector woes, oversupplied markets, and weak appetite for crypto treasuries as reasons for the downturn.

K33, a blockchain analytics provider, observed that discounts to NAV have intensified selling, with companies such as FG Nexus and ETHZilla deepening declines by focusing on share price stability rather than long-term ETH accumulation.

Industry experts caution about broader risks. "The DAT structure is under significant pressure," stated Kyle Cerminara, CEO of FG Nexus. "We intend to keep repurchasing shares while our stock remains below NAV, which should gradually enhance per-share value as our financial position improves." Still, some critics warn that these strategies could further depress ETH prices, especially as major treasuries—including BitMine, which owns 3.56 million ETH—are also facing unrealized losses.

Technical analysis points to a bearish trend. Ethereum's 50-, 100-, and 200-day exponential moving averages are aligned downward, and the Relative Strength Index (RSI) is near oversold at 26. Should ETH fall below the $2,850 support, FXStreet analysts suggest it could slide toward $2,300. On-chain metrics also show $170 million in ETH liquidations in the last week, with long positions making up 83% of those losses.

The difficulties facing the DAT sector go beyond single companies. As of November 20, ETF outflows have surpassed $4 billion and a $1.4 billion weekly liquidation event has heightened market instability. With leverage unwinding and economic headwinds persisting, the outlook for recovery is still unclear. "Past trends indicate ETH may recover after a period of deleveraging,"

, "but a lasting rebound will depend on both macroeconomic stability and improvements in DAT balance sheets."