Why another monthly close in red could be disastrous

Ethereum is trading near the $2,890 support zone as prices tighten, with traders monitoring resistance levels and the upcoming monthly close.

Ethereum (ETH) is trading near a level that could define its next move. It compressed between key support and visible resistance, creating a potential breakout or breakout as the monthly market close approaches.

The asset costs around $2,970 at the time of publication. The daily range remains narrow, with a 24-hour low at $2,920 and a high at around $3,050. The trading volume is over $22 billion. Over the past week, Ethereum has fallen just over 2% and is slightly in the red on a daily basis.

$2,890 is a crucial support level

Crypto analyst Patel has identified $2,890 as a significant demand area. He said holding above this level keeps Ethereum’s broader bullish structure in place.

$ETH at a critical inflection of HTF support.

$2,890 is the structural demand level.
Acceptance above this level preserves the bullish market structure.

If support holds → Continued rise towards $3,650 and $4,250.
Failure to hold → Bullish thesis invalidated.

Binary zone.… pic.twitter.com/Qv6jSZcdmz

-Crypto Patel (@CryptoPatel) December 29, 2025

The asset has rebounded several times from this level in recent weeks. Currently, ETH is trading just above this zone. As long as the market accepts a price above $2,890, the current structure remains. A breakdown below this point would invalidate this view, bringing lower levels back into focus.

Below $2,890, previous support areas lie near $2,630 and $2,400. ETH has already reacted in these zones, but holding above current levels would prevent a retest of these zones.

On the upside, Ethereum faces resistance between $3,050 and $3,150. This range has been tested several times, but ETH has yet to break through. Michaël van de Poppe said the market looked stronger, but cautioned: “Nothing confirmed.” He added that a break above this resistance could lead to a push towards $3,700.

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The structure in lower time frames shows a clear upward trend. However, unless ETH closes above this resistance range, the momentum could stall. If a breakout occurs, traders are eyeing $3,650 as a short-term target.

Indicators and sentiment show mixed signals

Some technical indicators are starting to show movement. Dami-Defi noted that in a similar setup earlier this year, a breakout followed once the RSI rose above 50 and the MACD crossed in a bullish manner. “We see the first signs of this same configuration“, he said, but stressed that confirmation was still needed.

The CW analyst also mentioned a CME futures gap near $2,950, a level where the price is currently hovering. These gaps are often filled before the trend continues, making it an area of ​​short-term interest.

Market expected to close monthly

Crypto Patel also noted that if Ethereum closes December in the red, this will mark 75% of monthly candles in 2025 closing lower. “Monthly closing matters“, he said. This would reflect a difficult year for ETH holders.

Beyond the charts, sentiment around Ethereum remains mixed. Some investors point to a slower price response than network growth, adding to holder frustration.