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ETH is struggling to hold above the $3,000 level as selling pressure remains strong.
Ethereum ETF outflows are reducing demand and weakening short-term price momentum.
Federal Reserve policy uncertainty is hurting broader cryptocurrency market sentiment.
Ethereum, the second-largest cryptocurrency by market value, is facing renewed pressure as it struggles to remain above the critical $3,000 level. This price zone has long acted as a psychological and technical support for traders. However, recent market action shows that ETH has repeatedly failed to hold above it. As of December 18, 2025, ETH was trading near $2,823, reflecting weak momentum and growing uncertainty about the strength of any near-term recovery.
Its inability to reclaim the $3,000 line raises questions about whether Ethereum is entering a deeper consolidation phase or setting up for further downside. While long-term fundamentals remain relatively strong, quick forces such as market sentiment, liquidity conditions, and macroeconomic pressures are currently dominating price behavior.
Also Read: Ethereum Whale Makes $600 Million Move: What it Means for ETH Investors
The current slide in ETH price followed a recovery attempt earlier in the month that fizzled out quickly. Bearish momentum picked up around the $3,000 level, causing a pullback that stopped a potential breakout. Market sentiment was derailed, with short-term market players considering the $3,000 level a point of resistance rather than support.
Market mood has now turned cautious. Volumes have been smaller, and price movements have been short-lived, which makes the market prone to sudden downward movements in reaction to negative news or pullbacks. Minimal pressure can cause steady declines too.
One of the most important factors affecting ETH price is cash flow leaving the spot Ethereum ETFs. Ethereum cash flow funds have managed to post consecutive net outflows; this is associated with low demand within the spot markets.
It is important to note that the Ethereum cash flow funds that end up facing redemptions indicate that managers were forced to sell ETH. These ETF outflows are significant; they show institutional and passive investor attitudes and behavior.
Consistent withdrawal of funds show a certain lack of confidence in price gains in the short term. Even if individual investors buy during pullbacks, the sales associated with the ETFs might counter this force. Without the resumption of fund inflows, ETH may find it difficult to generate momentum.
The current macroeconomic factors are also contributing significantly. Risk assets, such as cryptocurrencies, have been reacting to changes in monetary policy sentiments in the US. The current indicators from the Fed have lowered sentiments for cuts in interest rates in the US, strengthening the US dollar and lowering risk appetite globally.
It is likely that speculative markets, which include cryptocurrencies, will perform poorly. Bitcoin, Ethereum, and other leading cryptocurrencies are already experiencing downward momentum, which indicates it is not a single problem that ETH is experiencing. For the asset to rally, there needs to be a positive change on the macro level as well.
Ethereum is showing strong fundamentals, despite price weakness. The number of participants in staking is also steadily on rise, reaching 36.8 million ETH at the end of the third quarter of 2025. This is approximately 30% of all ETH that is in circulation.
The ETH that is staked is not readily sold since it is locked. This strong level of staking is a reflection of confidence in the network. Additionally, it establishes a supply constraint, which has contributed to the prices in past cycles. Staking by itself does not ensure that the short-term prices are not affected by ETF selling pressure.
One of the major modifications to Ethereum’s network is the EIP-1559 upgrade, in which a fee-burning feature was introduced to reduce the supply of ETH in the market by burning some fees when the transaction happens in a scenario with high market activity.
This can lead to a deflationary model in ETH. Recently, however, the burn rate of the coin on a daily basis has not been significant enough to counter the effect of the selling pressure.
The level of activity within the network has been steady but incapable of a substantial effect on the circulating supply. Consequently, the effect of the burning of fees has been insignificant in the present environment.
Ethereum is at a critical juncture. The $3,000 level is still the most significant resistance to break. A failure to push past it will keep the short-term market sentiment delicate. Under current market conditions, one of the most critical support areas is between $2,800-$2,700.
Breaching this level might just pave the way to the $2,600 level. On the positive side, a breakout above $3,200-$3,400 would be required to instill confidence among bulls. This would also demand strong trading volumes and a change in the ETF flows from negative to positive.
Until then, the markets would witness choppy action and remain event-driven.
Derivatives markets also impact ETH’s short-term trend. Large values of open interest and fluctuating funding rates could lead to wild liquidations. As prices drop sharply, leveraged positions trigger forced closing, which accelerates the drop. ETH needs to see a cooling-off period in derivatives markets.
Whale accounts have a mixed story to tell as well. Some of the on-chain actions indicate accumulation, while others show distribution and rotation of funds into Bitcoin.
A mixed on-chain story like this is less indicative of a sharp reversal based on accumulation by the whales. Continuous buying pressure from such Whale accounts is required to offset the existing selling pressure.
ETH could still turn around, although it can be difficult considering the current scenario. Positive structural factors like high staking levels, reduced total issuance, and fee burns are helpful in the long run. However, in the short run, price movements in ETH are being influenced by liquidity and sentiment.
A number of conditions would have to fall into place for a believable reversal to begin. Positive flows into exchange-traded funds, stability in derivative markets, and a shift towards a more supportive macroeconomic backdrop for risk assets will be necessary.
Also Read: Ethereum Price Prediction: Could ETH Drop 50% Despite Recovery?
Ethereum’s struggle to remain above $3,000 shows both internal and external factors are pressuring it. Although this week seemed to be uniform for the network, some market-related shifts, including ETF outflows and unfavorable conditions, can stop it from moving above this level in the short term.
Investors and traders are likely to keep a close eye on ETF flow data, staking levels, fee burns, and central banking announcements to pick up any indicators on the next big action to take. Whether a temporary correction or a beginning of a correction phase, it's yet to be seen; it depends largely on the ensuing days and weeks to come.
1. Why is ETH struggling to stay above $3,000?
ETH is facing selling pressure from ETF outflows, weak market sentiment, and broader risk-off conditions across global markets.
2. How do Ethereum ETFs impact ETH price?
When ETFs see outflows, fund managers sell ETH, thus increasing supply in the market while pushing prices lower.
3. Is the Federal Reserve affecting Ethereum’s price?
Yes, uncertainty around Federal Reserve interest rate policies reduces risk appetite, which negatively impacts cryptocurrencies like Ethereum.
4. Are Ethereum fundamentals still strong despite price weakness?
Yes, high staking levels, reduced issuance, and the fee-burning mechanism continue to support Ethereum’s long-term outlook.
5. What could help ETH recover above $3,000?
Positive ETF inflows, improved macro conditions, and stronger buying from large investors could help ETH regain momentum.
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