ETH Can’t Even: Why $3K Is a Dream for This Crypto 💸

by

Ether (ETH) has been playing hard to get, flirting with $3K but never committing. 🤷‍♀️ A consolidation period after its flash crash to $2,620 on Nov. 21-because nothing says “I’m stable” like a 15% drop in a day. 😂

Key takeaways:

  • Ether slid below $3K again because no one wants to buy futures and long-term holders are selling like it’s Black Friday. 🛍️

  • Declining Ethereum network fees and activity? More like declining interest in a boring party. 🎉

  • Weak technical setups? Oh, it’s definitely heading to $2,300 if the next support is lost. Because nothing says “optimism” like a 25% drop. 😭

ETH price stuck between two trendlines

Ether’s recent recovery was rejected by resistance from the 50-day EMA, which currently sits at $3,260. Because why would ETH ever break through a number that sounds like a luxury car? 🚗

This move, however, saw ETH/USD find support from the $2,800-$2,600 demand zone. The 200-week EMA is currently within this zone. Because nothing says “I’m a financial genius” like a moving average. 🧠

ETH must rise above the resistance at $3K and surpass the 50-day EMA to break out of consolidation for a sustained recovery toward $4K. Because nothing says “I’m bullish” like a 33% increase. 📈

The Glassnode cost basis distribution heatmap showed resistance between $3,100 and $3,250, where investors acquired roughly 5.9 million ETH. Because nothing says “I’m a savvy investor” like buying at a price that’s now a distant memory. 🕰️

On the downside, the key support area is around $2,800, where 5.8 million ETH were previously purchased. Because nothing says “I’m a long-term holder” like holding onto coins that are now worth less than a cup of coffee. ☕

Ether price lacks bullish momentum

Ether futures are currently trading at a 3% premium relative to bearish ETH spot markets, reflecting declining demand from buyers using leverage. Because nothing says “I’m confident” like borrowing money to bet on a coin that’s already tanking. 🏦

In bearish market conditions, futures premiums typically stay below 5%, signaling weak demand for leveraged long positions and less optimism among traders. Because nothing says “I’m optimistic” like a 3% premium. 🤷‍♂️

More concerningly, even last week’s recovery to $3,750 did not restore sustained bullish sentiment among traders. Because nothing says “I’m excited” like a 10% bounce that doesn’t stick. 🎯

The bearish trend in Ether futures coincided with a decline in long-term holder supply, which has decreased by 847,222 coins over the past 30 days, the largest drop since January 2021. Because nothing says “I’m selling” like a 10% drop in holdings. 🚪

Ether’s inability to stay above $3K can also be attributed to the decline in Ethereum network fees, although this issue has affected the entire cryptocurrency market. Because nothing says “I’m a leader” like having lower fees than your competitors. 🏆

Ethereum chain fees totaled $15.1 million over the past 30 days, representing a 45% decrease from the previous month. By comparison, fees on BNB Chain dropped 56%, and Tron experienced a 15% decline. Because nothing says “I’m the best” like being the least bad. 🤡

Although the number of active addresses on Ethereum’s base layer increased by 3.5% over the same period, it has decreased by 14% over the last seven days. The number of transactions is down by 11% over a seven-day period. Because nothing says “I’m growing” like a 14% drop in users. 🧨

Ethereum bears target $2,300 ETH price

The ETH/USD pair has validated a bear flag on the daily chart after dropping below its lower boundary at $3,200. Because nothing says “I’m a bear” like a flag that’s pointing downward. 🚩

“Ethereum is consolidating after a sharp sell-off, forming a bear flag beneath prior support near the 3,173 to 3,250 zone,” said analyst Danny Naz in an X post on Sunday, adding:

“That area has flipped to resistance.”

The measured target of the flag is $2,300, representing a 22% drop from the current price. Because nothing says “I’m a prophet” like predicting a 22% drop. 🧙‍♂️

Zooming into the 12-hour time frame, a break and a close below the lower trendline of a megaphone pattern at $2,800 would open the way for a deeper correction toward the measured target of the pattern at $2,376. Because nothing says “I’m a technical analyst” like a megaphone pattern. 📢

Such a move would represent an 18% drop from the current price. Because nothing says “I’m a mathematician” like an 18% drop. 🧮

If this support fails and the bears manage to pull the price below $2,800, ETH price could descend to the next $2,716 to $2,623 support zone. Because nothing says “I’m a bear” like a 10% drop. 🐻

Read More

2025-12-16 19:01