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Ethereum (ETH)\u00a0 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.<\/p>\n
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.<\/p>\n
Analyst Crypto Patel identified $2,890 as an important demand zone. He stated that holding above this level keeps Ethereum\u2019s broader bullish structure in place.<\/p>\n
\n$ETH<\/a> at a Critical HTF Support Inflection.<\/p>\n
$2,890 is the Structural Demand level.
\nAcceptance above this level Preserves Bullish Market Structure.<\/p>\nIf Support Holds \u2192 Upside Continuation Toward $3,650 and $4,250.
\nFailure to Hold \u2192 Bullish Thesis Invalidated.<\/p>\nBinary Zone.\u2026 pic.twitter.com\/Qv6jSZcdmz<\/a><\/p>\n
\u2014 Crypto Patel (@CryptoPatel) December 29, 2025<\/a><\/p>\n<\/blockquote>\n
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.<\/p>\n
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.<\/p>\n
On the upside, Ethereum faces resistance at $3,050\u2013$3,150. This range has been tested several times, but ETH has yet to break through. Micha\u00ebl van de Poppe said<\/a> the market looks stronger, but cautioned, \u201cNothing confirmed<\/em>.\u201d He added that a break above this resistance could lead to a push toward $3,700.<\/p>\n
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.<\/p>\n
Indicators and Sentiment Show Mixed Signals<\/h2>\n
Some technical indicators are beginning to show movement. Dami-Defi noted<\/a> that in a similar setup earlier this year, a breakout followed once the RSI moved above 50 and the MACD crossed bullishly. \u201cWe\u2019re seeing early signs of that same setup<\/em>,\u201d he said, but pointed out that confirmation is still needed.<\/p>\n
Analyst CW also mentioned<\/a> 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.<\/p>\n
Market Looks to Monthly Close<\/h2>\n
Crypto Patel also noted<\/a> that if Ethereum closes December in the red, it will mark 75% of monthly candles in 2025 closing lower. \u201cThe monthly close matters<\/em>,\u201d he said. This would reflect a difficult year for ETH holders.<\/p>\n
Beyond charts, sentiment around Ethereum remains mixed. Some investors point<\/a> to a slower price response compared to network growth, adding<\/a> to frustration among holders.<\/p>\n
The post Ethereum Alert: Why Another Monthly Close in Red Could Be Disastrous<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n