Ethereum News Today: Ethereum Trapped Below $2,950 as Sellers Stay in Control

Ethereum remains in a consolidation phase as it trades just below $2,950 on December 25. The price has stabilized following a period of controlled weakness after hitting a late-summer peak. Despite the recent slowdown in downside momentum, the broader structure continues to show bearish tendencies.

Market indicators suggest that Ethereum is not currently attracting strong buyer interest. Price remains capped beneath major moving averages, reinforcing the bearish outlook. The aggressive selloff seen earlier in December has not triggered follow-through selling, and the market has shifted into a sideways-to-slightly-upward pattern.

Weak inflows and cautious derivatives positioning indicate a market in consolidation rather than reversal. While Ethereum is no longer accelerating lower, buyers have not shown the conviction needed to reclaim trend leadership. This dynamic has left the asset in a state of compression, where traders are waiting rather than actively positioning.

How Markets Reacted

Ethereum's price is currently constrained by key resistance levels on the daily chart. The 20, 50, 100, and 200-day EMAs remain layered overhead, forming a bearish stack that has governed price action since mid-November. These moving averages have repeatedly rejected recovery attempts, keeping the broader trend in a corrective phase.

The 20-day EMA near $3,005 is the first significant resistance level. Above that, the 50-day EMA around $3,166 acts as a more formidable barrier. As long as Ethereum remains below this level, any upside moves should be viewed as countertrend bounces rather than the start of a new bull phase.

Downside momentum has softened, with Ethereum failing to generate follow-through selling during the recent pullback toward $2,850. Instead, the asset has moved into a sideways-to-upward pattern, indicating that sellers are no longer pressing aggressively. This shift is subtle but meaningful in understanding the current market sentiment.

What Analysts Are Watching

Momentum indicators support the stabilization narrative, with daily RSI holding in the low-to-mid 40s. This suggests weak momentum but also signals that Ethereum is no longer deeply oversold. The RSI has flattened rather than continued to decline, a pattern often seen during consolidation phases following extended downturns.

Intraday charts show early signs of stabilization, with Ethereum forming higher lows since December 24. Supertrend support has begun rising toward $2,920, and the Parabolic SAR has flipped beneath price, signaling short-term trend repair. However, upside progress remains capped beneath the $2,950–$2,980 resistance zone.

Volatility has declined noticeably, reinforcing the view that Ethereum is transitioning from active selling into a compression phase. This phase is characterized by a lack of directional momentum rather than the start of a new trend. The market is rotating within a tight range, favoring mean reversion strategies over directional bets.

Risks to the Outlook

Spot flow data highlights the lack of conviction among buyers. Ethereum recorded $26 million in net outflows on December 25, extending a pattern of persistent distribution seen throughout the fourth quarter. While outflows have moderated compared to earlier selling waves, they remain a headwind for any sustained recovery.

Derivatives positioning also tells a story of caution rather than accumulation. Futures open interest stands near $37.3 billion, slightly lower on the day, while trading volume has contracted sharply. This reflects leverage reduction rather than aggressive short positioning. The market is de-risking, not betting on a rebound.

Long positions continue to absorb most losses over the past 24 hours, indicating that late bullish entries are still being punished. However, liquidation volumes remain modest, signaling an orderly unwinding rather than market capitulation. This pattern points to a gradual compression phase rather than a sharp reversal.

What This Means for Investors

Critical support for Ethereum now lies in the $2,900–$2,880 range, which has repeatedly attracted buying interest. A decisive break below this level could reopen downside risk toward the $2,750 region. On the upside, Ethereum needs to reclaim $3,000 on a daily closing basis to shift short-term momentum in favor of buyers.

A stronger confirmation would require a sustained move above $3,160, where the 50-day EMA is located and where prior breakdowns originated. Until Ethereum can reclaim these key technical levels with strong volume and spot inflow support, the current price action should be viewed as consolidation within a corrective structure.

Investors should remain cautious, as the structural dynamics that characterized the fourth-quarter correction remain largely unchanged. The current stabilization reflects seller fatigue rather than renewed buyer conviction. Until there is a clear shift in on-chain and flow metrics, Ethereum's trajectory is likely to remain sideways or slightly bearish in the near term.