Ethereum News Today: Ethereum Stuck Below $3,000 as Traders Await Breakout Catalyst

Ethereum's price continued to struggle against the $3,000 level as the year came to a close, with traders and analysts closely watching whether the asset would find support or face further declines. The token, which had shown some signs of a short-term rebound, remained constrained within a defined range, unable to break through key resistance levels on the daily and 4-hour charts according to analysis. With technical indicators and on-chain data showing mixed signals, the market remained cautious and in a consolidation phase.

On-chain metrics highlighted reduced exchange reserves, a typically bullish sign for Ethereum, as data shows more coins were being moved off exchanges into cold storage. This behavior suggested long-term holders were accumulating, yet the price had not yet reacted to the trend. Meanwhile, derivatives markets reflected a similar pattern of consolidation, with analysts noting that traders were positioning for potential volatility in early 2026 rather than in the near term.

Recent price action showed Ethereum briefly reclaiming the $3,000 level, which had previously triggered sharp sell-offs, but failed to maintain the gain. The asset remains below critical moving averages and a key descending trendline, with a bearish crossover likely in the coming weeks. A sustained breakout above the $3,500–$3,700 supply zone could trigger a bullish reversal, but for now, the trend remains fragile.

Why the Range Continues

Ethereum's price has been locked within a defined trading range between $2,900 and $3,200 for weeks, with technical and options data reinforcing both support and resistance levels. Options positioning shows that traders are not expecting an immediate breakout, as activity is concentrated in contracts expiring in late 2025 and 2026. This behavior indicates a preference for long-term exposure rather than short-term bets.

The $3,000 level has become a key psychological support, reinforced by the density of options strikes. Meanwhile, resistance at $3,200 is thinning, but a sustained break above that level would require strong volume and renewed buying interest. Until that happens, the price is likely to remain range-bound.

What Analysts Are Watching

Technical indicators, including the Relative Strength Index (RSI) and moving average convergence divergence (MACD), show Ethereum is gaining momentum. This suggests that while the short-term bounce is real, it has not yet translated into a sustained trend. Analysts are watching for a confirmation of a breakout from the falling trendline, which would signal a shift in market sentiment.

On-chain data remains positive, with declining exchange reserves indicating reduced selling pressure and increased accumulation. However, this has not yet translated into a price rebound, leaving some analysts to speculate that macroeconomic factors or external catalysts may be needed for a reversal. The broader crypto market is also waiting for clarity on U.S. monetary policy and potential developments in the Ethereum network, such as upgrades or institutional adoption.

Risks to the Outlook

While on-chain and technical data suggest Ethereum could break out of its consolidation phase, the risks to the near-term outlook remain significant. The recent drop in price below $2,900 and the failure to hold above key levels have triggered renewed bearish sentiment. Liquidations in the crypto market have been on the rise, with over $600 million in losses reported in a single day in early December.

Moreover, Ethereum ETFs have seen significant outflows this month, with net redemptions exceeding $510 million. This trend indicates that institutional and retail investors remain cautious about the market's direction. With Ethereum still below its 200-day moving average, a deeper correction toward $2,500 or even $2,065 is a possibility if the current technical structure breaks down according to analysis.

What This Means for Investors

For investors, the current Ethereum price environment highlights the need for patience and discipline. While the long-term fundamentals remain strong-supported by declining exchange balances and institutional interest in tokenized assets-the short-term outlook remains uncertain according to market analysis. Investors holding Ethereum should consider the defined range between $2,900 and $3,200 as a key area to monitor, with stop-loss orders potentially needed below the $2,700 support level.

Traders looking for entry points may find opportunities if Ethereum breaks above $3,200 with strong volume, but without confirmation of a breakout, the asset remains vulnerable to further consolidation or a decline. With the market waiting for macroeconomic clarity and potential structural upgrades to the Ethereum network, the next few months will be critical in shaping the asset's trajectory into the new year.