Ethereum (ETH) has entered another period of sharp price compression, a phase that has left traders divided between expectations of a rebound and concerns about a deeper correction.
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Since December 15, Ethereum price has been hovering near the $3,100 level, pulling aside after several failed attempts to regain higher resistance zones. The range narrowing reflects market-wide hesitancy, with declining volumes, mixed technical signals and contrasting institutional activity.
Despite modest intraday fluctuations, Ethereum’s broader structure shows a market awaiting direction. Trading activity has slowed compared to the beginning of the year, indicating reduced speculative participation rather than heavy distribution.
ETH's price trends sideways on the daily chart. Source: ETHUSD on Tradingview
Key Ethereum price levels define the short-term outlook
Support near the $3020-$3000 zone remains critical. This area has been tested multiple times and continues to act as a floor for price action.
A permanent break under it would probably expose it Ethereum price to a deeper pullback, with some analysts pointing to demand zones closer to $2,900 or even the $2,600-$2,500 range if the downside momentum accelerates.
On the downside, resistance between $3,150 and $3,400 continues to limit recovery attempts. Ethereum remains below the major moving averages and the descending trendline that has guided price action since November.
Analysts note that a daily close above this resistance band, supported by rising volume, would be necessary to shift the current corrective bias and signal a trend reversal.
Different technical signals increase uncertainty
Technical interpretations remain mixed. Elliott Wave analysts argue that Ethereum may be approaching a potential wave 3 phase, which has historically coincided with strong upward moves.
However, others point to the lack of strength in demand and repeated bounces near resistance as signs that the upside moves remain corrective rather than impulsive.
On-chain data adds another layer of complexity. Liquidation heatmaps reveal dense clusters above current prices, particularly in the $3,400-$3,700 range, suggesting a potential price magnet if momentum builds.
At the same time, tighter liquidity below current levels implies that a downturn could occur before any sustained growth occurs.
Institutional flows are opposed to price stagnation
While the price of Ethereum remains compressed, institutional involvement continues to grow. place in the USA Ethereum ETFs saw roughly $209 million in net inflows over the past week, led by BlackRock’s ETHA.
Separately, BitMine Immersion Technologies has continued to accumulate Ether, now holding a significant portion of the circulating supply as part of a long-term treasury strategy.
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This contrast between steady institutional accumulation and cautious market pricing underscores the current stalemate. For now, Ethereum remains caught between strong long-term narratives and unresolved short-term technical pressure, with a clear breakout or breakdown likely to determine sentiment in the weeks to come.
Cover image from ChatGPT, ETHUSD chart from Tradingview
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