Ethereum News Today: Institutions Stockpile ETH Amid $3K Push as ETFs See Inflows

Ethereum (ETH) appears to be breaking free from a prolonged bearish trend as the price inches closer to the $3,000 resistance level, signaling a potential shift in market sentiment. The cryptocurrency has faced repeated rejections near the $2,950–$3,000 range, a critical barrier that has constrained upside momentum this month. However, recent on-chain data and institutional activity suggest growing confidence in Ethereum's ability to stabilize and rally.

The price action has drawn attention to the $2,800 support area, where Ethereum has historically attracted strong buyer interest. A successful defense of this level could reignite bullish momentum, propelling ETH toward $3,000 and beyond. Conversely, a breakdown below $2,800 risks a deeper correction, with technical indicators like the on-chain volume and oscillator (OBV) showing weakening buying pressure. Meanwhile, large holders, including institutional whales, have been accumulating over 300,000 ETH during the recent dip, signaling conviction in the asset's long-term value.

Institutional confidence is further underscored by Bitmine's latest $49 million ETH purchase, adding to its corporate treasury. The company now holds approximately 3.5 million ETH, valued at over $10 billion, as it continues to treat price dips as buying opportunities. This aggressive accumulation contrasts with broader market fragility, as ETF outflows for Bitcoin persist while Ethereum ETFs see modest inflows. BlackRock's ETHA ETF alone recorded $93 million in inflows, reflecting divergent institutional strategies between the two leading cryptocurrencies according to market analysis.

Technical analysis highlights mixed signals. Ethereum's 50-day moving average (MA) approaches a potential death cross below the 200-day MA, a bearish signal for the medium term. However, the Relative Strength Index (RSI) and MACD have shown recent bullish divergence, with the RSI stabilizing above 30 and the MACD flipping positive on the hourly chart. These indicators suggest that short-term buyers are gaining traction, particularly as Ethereum breaks above key trend lines and Fibonacci retracement levels.

The broader market context adds complexity. The U.S. Federal Reserve's December policy meeting looms, with traders pricing in an 81% probability of a 25-basis-point rate cut. Such a move could boost risk appetite, benefiting crypto assets like Ethereum. However, liquidity constraints persist, as market makers continue to repair balance sheets damaged by October's $20 billion in forced liquidations. Tom Lee warns that this liquidity squeeze may prolong the current bearish phase for several more weeks.

Ethereum's performance relative to Bitcoin also offers insight. The ETH/BTC ratio has hit its most bullish level ever, with Ethereum outperforming Bitcoin for the first time in months. This divergence is attributed to Ethereum's upcoming Fusaka upgrade, which introduces PeerDAS to enhance Layer-2 scalability and reduce transaction costs. Analysts view this as a catalyst for increased network activity and potential price gains.

While the path to $3,000 remains uncertain, Ethereum's recent resilience has sparked cautious optimism. A sustained move above $2,950 would validate the breakout, while a failure to hold $2,800 could trigger a retest of the $2,620 support. The coming weeks will be critical in determining whether Ethereum can solidify its recovery or face renewed bearish pressure.