Ethereum News Today: Ethereum's $3,100 Crucible: Will Bulls Hold or Face $2.8K Reckoning?

Ethereum (ETH) is testing critical support levels near $3,100 as technical indicators and on-chain data suggest a potential continuation of its bearish trend. Analysts are closely monitoring whether the asset can hold above this threshold or face further downward pressure toward the $2,800–$2,900 range, a historically significant accumulation zone for long-term investors.

The price of ETH has dropped 11% in the last 24 hours and 4% weekly, trading near the weekly 50 EMA-a level that previously acted as resistance. Traders warn that a breakdown below $3,230 could trigger a deeper correction. "Lose this... and momentum dies," noted Merlijn The Trader, adding that a failure to hold this support would shift the narrative to the downside.

On-chain data reveals Ethereum is within 8% of the Accumulation Addresses Realized Price at $2,895, a level where long-term holders have historically accumulated during market cycles. CryptoQuant analyst Burak Kesmeci highlighted that this zone, previously tested during the April 2025 Trump tax-tariff crisis, has acted as a strong support for strategic buyers. If ETH dips further, it could mirror past rebounds seen after extreme sell-offs.

Meanwhile, whale activity underscores mixed market sentiment. A major whale deposited 3,000 ETH into Binance, incurring a $6.92 million unrealized loss, while other large holders have withdrawn assets from exchanges. This contrasts with Ethereum's broader sell-off, as Ethereum ETFs have faced $259 million in outflows since early November, reflecting institutional caution.

Technical indicators reinforce the bearish outlook. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) remain in oversold territory, signaling weak bullish momentum. A daily close above $3,200 could stabilize the trend, but a breakdown would target $2,800–$2,900. Analysts like GalaxyBTC note that a double bottom near $3,100–$3,200, similar to the 2020 pattern, could still catalyze a rebound.

The broader market context adds to the uncertainty. Bitcoin's performance remains a key driver, with Ethereum's strength against BTC now tied to reclaiming the 50-week EMA on the ETH/BTC pair. Meanwhile, DeFi projects like Mutuum Finance (MUTM) continue to attract attention, having raised $18.7 million in a presale nearing 99% allocation for its Q4 2025 V1 launch. However, such developments have yet to offset the broader crypto market's risk-off sentiment.

As Ethereum hovers in a narrow range between $3,350 and $3,675, the coming weeks will test whether bulls can defend key levels or if bears will push the price toward new lows. With short-term support near $2,900 and resistance at $3,640, traders are bracing for a decisive move.