Ethereum Price Approaches Rebound Zone As FG Nexus Sells ETH for $33M Stock Buyback

The Ethereum price has slipped 8% in the last 24 hours to trade at $2748 on a 5% increase in trading volume to $43 billion.

This is after FG Nexus reversed its earlier plan to expand its Ethereum holdings, instead selling 10,922 ETH, worth about $33 million, to help finance a major stock buyback. The company also drew $10 million in borrowed funds, using the total amount to repurchase 3.4 million shares, equal to 8% of its public float, at an average price of $3.45.

This marks a shift from its previous strategy of becoming a major corporate ETH holder, especially after filing a $5 billion shelf registration in August for potential Ethereum acquisitions.

Following the sale, FG Nexus now holds about 40,005 ETH, while Ethereum’s drop below $3,000 has intensified pressure on treasury firms. The move aligns with similar actions by ETHZilla, which recently sold $40 million in ETH to fund buybacks.

Meanwhile, 10X Research reports that Tom Lee’s BitMine—the largest Ethereum treasury company—is facing roughly $3.7 billion in unrealized losses, with an average ETH cost of around $4,000. Despite being down over $1,000 per ETH, BitMine continues to accumulate, purchasing more than 54,000 ETH last week and adding nearly 46,000 ETH this week, according to on-chain data showing new inflows to its associated wallets.

ETH Oversold: Price Sits in Rebound Zone With Breakout Ahead

Ethereum is trading at $2,807 and is sitting at the bottom of a falling wedge pattern, which is normally a bullish setup. This means the price has been dropping within narrowing trendlines, and ETH is now close to the wedge’s support line, where rebounds often begin.

The chart shows ETH in a potential rebound zone, an area where buyers may step in. The RSI is around 28, which is oversold. When RSI is this low, it usually signals that selling pressure is slowing and a bounce may happen soon.

ETH/USDT Daily Chart Analysis, Source: Tradingview

However, ETH is still below the 50-day SMA ($3,761) and the 200-day SMA ($3,494). This indicates that the overall trend remains bearish. For Ethereum to turn bullish again, it must break above the wedge’s upper line and climb back over the 200-day moving average.

If ETH breaks out of the wedge, the next major resistance area is the reward zone near the 200-day SMA. A full breakout could push ETH much higher over time, with a long-term target near $4,956, but that would require strong momentum. If the rebound fails, ETH could fall back toward the lower support levels seen earlier in the year.

Ethereum is oversold and sitting in a bullish wedge support area, so a rebound is possible. But the trend doesn’t fully shift until ETH breaks above the wedge and the major moving averages.