Ethereum (ETH) has entered a new period of sharp price compression, a phase that has left traders torn between expectations of a new rally and concerns about a deeper correction.
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As of December 15, Ethereum price was trading near the $3,100 level, drifting sideways after several failed attempts to reclaim higher resistance zones. The narrowing range reflects hesitation in the market, with declining volumes, mixed technical signals and mixed institutional activity.
Despite modest intraday swings, Ethereum’s broader structure shows a market awaiting direction. Trading activity has slowed compared to the start of the year, suggesting reduced speculative participation rather than massive distribution.
ETH's price trends sideways on the daily chart. Source: ETHUSD on Tradingview
Key Ethereum Price Levels Set Near-Term Outlook
Support near the $3,020-$3,000 area remains critical. This area has been tested repeatedly and continues to serve as a floor for price action.
An extended break below would likely expose Ethereum price to a further pullback, with some analysts highlighting demand zones closer to $2,900, or even the $2,600-$2,500 range if bearish momentum picks up.
On the upside, resistance between $3,150 and $3,400 continues to cap recovery attempts. Ethereum remains below major moving averages and a 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 alter the current corrective bias and signal a change in trend.
Divergent technical signals add to uncertainty
Technical interpretations remain mixed. Elliott Wave analysts say Ethereum could 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 rejections near resistance as signs that upward 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, lower liquidity below current levels implies that a wave of decline could occur before a sustainable recovery develops.
Institutional flows contrast with price stagnation
As Ethereum price action remains compressed, institutional involvement continues to grow. Ethereum spot ETFs in the United States saw approximately $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 cash flow strategy.
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This contrast between steady institutional accumulation and prudent market pricing underlines the current impasse. For now, Ethereum remains stuck between strong long-term narratives and unresolved near-term technical pressure, with a clear breakout or breakout likely to determine sentiment in the coming weeks.
Cover image from ChatGPT, ETHUSD chart from Tradingview
