Ethereum Dip Triggers Massive Losses For Crypto Treasuries

Key Takeaways

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  Ether (ETH) has seen a nearly 30% decrease in value over the past month, breaking the $3,000 mark.
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  This substantial price drop has erased a year of gains for numerous Web3 companies that held ETH in their treasuries.
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  Companies such as BitMine Immersion Technologies are facing billions of dollars in unrealized losses.
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  Several technical indicators suggest a potential for further price decline, with a significant support level identified at approximately $2,450.

Billions of Dollars in Unrealized Losses on Ethereum Holdings

The recent downturn of Ether (ETH), pushing its price below $3,000, has created significant financial difficulties for many Web3 companies that had allocated a substantial portion of their treasuries to ETH.

Analysis from Capriole Investments indicates that most Digital Asset Treasuries (DATs) are now reporting unrealized losses, with figures ranging from -25% to -48% on their ETH positions. These unrealized losses are exerting considerable pressure on the balance sheets of these entities.

BitMine Immersion Technologies, which holds 3.56 million ETH, representing 2.94% of Ethereum's total circulating supply, stands out as a prominent example. The company is reportedly experiencing a loss of $1,000 per ETH purchased, accumulating to a total unrealized loss of $3.7 billion across its holdings. Other major players in the sector, including Galaxy Digital, The Ether Machine, and SharpLink, are also reporting similar losses on positions acquired at peak prices.

Beyond the immediate capital losses, indicators of financial fragility are becoming more prevalent. The mNAV ratio (market value to net asset value) for many of these companies has fallen below 1. This signifies that the market valuation of their digital assets is now lower than their recorded net asset value on their balance sheets. This situation directly impacts their ability to secure additional funding or refinance ongoing operations. The following are the primary quantified findings highlighted by Capriole:

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  BitMine Immersion Technologies: Recorded losses of -28% over the past seven days and -45% over the last 30 days, translating to an unrealized loss of $3.7 billion.
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  The Ether Machine, Galaxy Digital, SharpLink: Experiencing losses ranging from -50% to -80% on their ETH positions when compared to their yearly highs.
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  Top 10 DATs: All listed entities are demonstrating negative returns across both weekly and daily performance metrics.
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  mNAV Ratio Below 1: This technical threshold signals a weakening of the market's perceived valuation, which could impede or even prevent future capital raises.

Ethereum’s price crash below $3,000 has vaporized a year’s worth of gains for many companies, leading to billions in unrealized losses. This situation highlights the volatility and risks associated with holding large amounts of ETH in treasuries. #ETH#Crypto#Web3#Ethereumpic.twitter.com/example

— Cointelegraph (@Cointelegraph) Example Date

These on-chain data reveal increasing pressure on the balance sheets of companies with significant exposure to Ethereum. Should prices continue to decline or experience further drops, some companies might be compelled to implement defensive strategies. These could include asset sales, corporate restructurings, or even the freezing of projects to ensure solvency.

A Familiar Bearish Scenario

The current market conditions bear a resemblance to the scenario observed in 2022. At that time, a chart pattern identified as a bearish fractal had accurately predicted a substantial pullback in the price of Ether.

Today, the same structural pattern appears to be repeating. This sequence is characterized by a sharp decline from a price peak, followed by a retracement towards the 200-week moving average, which is currently situated around the $2,450 level. The weekly super trend indicator has issued a sell signal, an indicator that was previously observed in March of the current year, preceding a -66% correction, and in January 2022, before an -82% collapse.

In conjunction with these concerning technical signals, institutional capital inflows are diminishing. Recent data indicates that since November 11, 2025, the combined ETH reserves held by Exchange-Traded Funds (ETFs) and strategic investment funds have decreased by 280,414 ETH.

If this downward trend persists, Ethereum could face a dual challenge: a loss of market confidence and an erosion of its fundamental supports, both financial and technical. The possibility of a return to the $2,500 level, following its previous ascent above the $4,000 mark, is no longer a theoretical concern. It is now substantiated by concrete data, encompassing both chart analysis and observed market behavior.