Ethereum News Today: Ethereum's $2,850 Support: Will Bulls Hold Off Bearish Breakdown?

Ethereum's price trajectory has sparked renewed debate among traders and analysts, with technical indicators and on-chain data suggesting potential for a significant rebound-or a deeper correction. The cryptocurrency, currently trading near $3,000, is testing critical support levels as traders monitor whether a falling wedge pattern could catalyze a surge beyond recent highs.

A key focal point is the $2,800–$2,950 range, which several analysts argue has functioned as a pivotal support zone. Erik, a trader on X, emphasized that a sustained break below this level could invalidate bullish expectations, potentially sending ETH to $800–$1,000 levels according to analysis. Meanwhile, Matt Hughes, another analyst, noted that Ethereum's current price action aligns with historical volatility patterns, framing the pullback to $2,870 as a normal correction within a broader bullish trend.

Technical analysis further underscores the tension at play. Ethereum's price is above the 100-day EMA ($2,950) but below the 50-day EMA ($3,080–$3,150), creating a mixed signal for trend direction. Traders are closely watching the 20-day Bollinger Bands, with the lower band at $2,850–$2,880 and the upper band near $3,150. According to Altcoin Buzz, a breakdown below $2,850 could trigger a wave of selling, highlighting a Stochastic RSI reading of 15–55 as indicative of bearish momentum.

On-chain data adds nuance to the debate. Altcoin Vector's liquidity analysis suggests Ethereum is undergoing a "liquidity reset," a pattern historically preceding multi-week bottoming periods rather than breakdowns. This process, if completed, could position ETH for a new expansion phase. However, the firm warned that delayed liquidity recovery might prolong stagnation and increase vulnerability to further declines.

Fundamentals remain resilient despite the price turbulence. ETH staking volumes hit a record high in November 2025, with over 33 million tokens locked, signaling strong long-term confidence in the network. Institutional activity also appears to be gaining traction, with BitMine Digital recently purchasing $72.5 million in ETH. Such accumulation could provide a floor for the price if retail sentiment weakens further.

The market is split on potential outcomes. If Ethereum holds above $2,850, the falling wedge pattern could drive the price toward $3,770–$5,823, with Fibonacci extensions and EMA crossovers acting as key triggers. Conversely, a breakdown below $2,820 -a level emphasized as a critical stop-loss- could extend losses to $3,221 or even $800–$1,000, depending on liquidity dynamics.

Analysts caution that while technical indicators and fundamentals present a mixed picture, the cryptocurrency's volatility remains a double-edged sword. "This is still just normal volatility in crypto," Hughes said, advocating for a bullish backtest if the support holds. Yet, Altcoin Buzz's analysis underscores the importance of risk management, urging traders to "protect capital" and remain cautious as momentum favors bears in the short term.