Ethereum Treasury Has Seen Sharp Demand, But ETH’s Price Action Shows Weak Follow-Through

Volatility observed around Ethereum is intensifying as the price faces a potential downward retest of the key $3,500 mark. ETH’s downside trend is taking place amid several bullish developments, such as massive accumulation by treasury companies, raising questions about its price stability and whether institutional demand could ￰0￱ Contrasts With Flat Ethereum’s Price Performance The foray of the Ethereum treasury strategy has been a historical and remarkable one, with prominent corporations in the crypto and financial landscape heavily buying the leading altcoin in large ￰1￱ accumulation of this magnitude signals growing institutional conviction in ETH’s fundamentals in the long ￰2￱ this high institutional demand, ETH is now being seen beyond a mere asset and as a reliable store of value.

However, despite the fact that demand from Treasury organizations has increased significantly, ETH’s price movement has not been able to match this fervor, displaying weak follow-through ￰3￱ a recent post on the social media platform X, Johnny, a market expert, outlined a remarkable growth in ETH treasury holdings as companies have bought nearly 4% of the entire ETH ￰4￱ is worth noting that this massive accumulation was carried out within a 3-4 month span, reflecting robust interest in the ￰5￱ with the strong buying spree , the altcoin’s price has persistently failed to experience a surge to the pivotal $5,000 ￰6￱ increasing discrepancy between on-chain accumulation suggests that short-term gains may be limited by profit-taking, network congestion, and macro uncertainty, which has raised eyebrows in the community.

Instead, Ethereum has undergone a sharp pullback from new highs and is heading toward the $3,500 support level, which could determine its next ￰7￱ a result of the pullback, the expert highlighted that many ETH treasury companies are now heavily ￰8￱ Accumulation By Treasury Companies Coming To An End? While the development is gaining ground in the crypto community, crypto expert and investor Ted Pillows has also thrown his weight behind the ￰9￱ has stated that Ethereum’s next price trajectory hinges on the performance of ETH treasury ￰10￱ to the expert, ETH treasury companies are still heading ￰11￱ Immersion, the leading ETH treasury firm, is currently the sole meaningful buyer, but Pillows is less convinced that it will last for ￰12￱ this happens, it is likely to affect its price action in the short ￰13￱ the market still trending downward, Pillows stated that treasury firms may run out of capital soon to purchase more ￰14￱ these stocks recover, the expert fails to see the potential for ETH’s price to recover ￰15￱ the time of writing, ETH was trading at $3,537, demonstrating a 5% decline in the past ￰16￱ the decrease in ETH’s price, buying pressure seems to be returning, as evidenced by a more than 82% increase within the same period.