Ethereum (ETH) is trading near a level that may define its next move. It has compressed between a key support and visible resistance, setting up a potential breakout or breakdown as the market approaches the monthly close. The asset is priced around $2,970 at press time. The daily range remains tight, with the 24-hour low at $2,920 and the high at around $3,050. Trading volume is above $22 billion. Over the past week, Ethereum has fallen by just over 2% and is slightly in the red daily. $2,890 Acts as a Crucial Support Level Analyst Crypto Patel identified $2,890 as an important demand zone. He stated that holding above this level keeps Ethereum’s broader bullish structure in place. $ETH at a Critical HTF Support Inflection. $2,890 is the Structural Demand level. Acceptance above this level Preserves Bullish Market Structure. If Support Holds → Upside Continuation Toward $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 bounced from this level several times in recent weeks. Currently, ETH is trading just above this area. As long as the market accepts a price above $2,890, the current structure holds. A breakdown below this point would invalidate that view, bringing lower levels back into focus. Below $2,890, prior support zones sit near $2,630 and $2,400. ETH has reacted in these areas before, but holding above current levels would prevent a retest of those zones. On the upside, Ethereum faces resistance at $3,050–$3,150. This range has been tested several times, but ETH has yet to break through. Michaël van de Poppe said the market looks stronger, but cautioned, “ Nothing confirmed .” He added that a break above this resistance could lead to a push toward $3,700. The structure in lower timeframes shows a clear upward trend forming. However, unless ETH closes above this resistance range, momentum may stall. If the breakout occurs, traders are looking at $3,650 as a near-term target. Indicators and Sentiment Show Mixed Signals Some technical indicators are beginning to show movement. Dami-Defi noted that in a similar setup earlier this year, a breakout followed once the RSI moved above 50 and the MACD crossed bullishly. “ We’re seeing early signs of that same setup ,” he said, but pointed out that confirmation is still needed. Analyst CW also mentioned a CME futures gap near $2,950, a level where the price is currently hovering. These gaps are often filled before trend continuation, making it a short-term area of interest. Market Looks to Monthly Close Crypto Patel also noted that if Ethereum closes December in the red, it will mark 75% of monthly candles in 2025 closing lower. “ The monthly close matters ,” he said. This would reflect a difficult year for ETH holders. Beyond charts, sentiment around Ethereum remains mixed. Some investors point to a slower price response compared to network growth, adding to frustration among holders. The post Ethereum Alert: Why Another Monthly Close in Red Could Be Disastrous appeared first on CryptoPotato .
