Ethereum reserve companies are facing unprecedented sell-offs, driven by a confluence of factors including declining ETH prices and market weakness. While initial gains fueled record highs for the asset, recent challenges have forced these companies to adjust their strategies, leading to significant sales. This is particularly evident in cases like ETHZilla, which were compelled to liquidate ETH for share buybacks, followed by FG Nexus, selling 10,922 ETH for the same reason. The result is a reduction in overall reserve holdings as companies attempt to maintain shareholder value amidst market downturns. 2020 has offered some respite thanks to long-term borrowings and low costs but this year’s trend points toward greater pressure. Experts now anticipate that further selling from other companies could occur as the ETH price remains volatile. This raises concerns about the sustainability of reserve company strategies in a turbulent market.