Ethereum (ETH) remains under selling pressure as it continues to fail key resistance levels, and the current price suggests the formation of a range or a bigger price correction. Following the rejection near the $3,017 resistance at the start of the week, ETH declined further and is now at $2,932, below the crucial $3,000 level.
Ethereum attempted a recovery, rising above $2,880 and momentarily reclaiming the $2,950 level. The bulls succeeded in driving the price above the 61.8% Fibonacci retracement level of the previous downtrend from $3,175 to $2,775, with a brief spike above $3,000. However, selling pressure grew at the $3,080 level.
The falling 50-day EMA at $3,185, the 100-day EMA at $3,395, and the 200-day EMA at $3,401 signal that the prevailing bearish outlook could extend further.
The immediate resistance is at $3,050, and a stronger one at $3,080. If the price breaks decisively above $3,150, it could open the door toward the $3,220-$3,265 zone.
On the other hand, failure to break the resistance may result in selling, taking ETH down to $2,840 or even further to $2,775 support.
The Relative Strength Index (RSI) at 43.22 is below the neutral 50 level, reflecting bearish pressure but not yet oversold.
A rising trendline could assist the buyers, particularly if the MACD indicator keeps a buy signal and enters the bullish zone. Green histogram bars above the zero line also indicate a possible transition to a bullish environment.
The market sentiment remains fragile, and the Crypto Fear & Greed Index is at 24, thus placing it in the “Extreme Fear” area.
The institutional actions have further confirmed this uncertainty. Spot Ethereum ETFs have experienced a net outflow of $95.53 million on 23rd December.
Over the week, the asset saw an outflow of $10.94 million, suggesting reduced risk appetite among institutions ahead of year-end.
On-chain metrics validate cooling participation. Weekly active Ethereum addresses went down from around 440,000 at the start of the year to 324,000 in December, the lowest level since May 2025.
The shift indicates that retail and institutional participants are adopting a wait-and-see approach.
Adding to near-term pressure, ETHZilla sold 24,291 ETH for approximately $74.5 million. In the future, the Company believes its value will be driven by revenue and cash flow growth from our RWA tokenization business.
As such, discontinuing the mNAV dashboard on their website is effective, but they intend to continue providing periodic balance sheet updates.
Also Read: ETH Holds Key Support as Traders Watch a Move Toward $4,000
Almost 29% of the total Ethereum supply in circulation is staked, which not only reduces the amount available for trading but also acts as a stabilizing force.
In DeFi, the total value locked has come down from the April highs of around $94 billion to the $70-$78 billion, reflecting caution but not systemic stress.
Ethereum remains caught between recovery attempts, and a sustained daily close above $3,017-$3,150 is needed for a renewed bullish momentum toward $3,400. Until then, ETH is likely to remain range-bound with a downside bias.
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