Ethereum is hovering near the $2,970–$3,000 range as bearish pressure continues to cap recovery attempts. Short-lived bounces have failed to gain traction, keeping ETH locked in a defensive structure.
The setup leaves Ethereum at a fragile point, where key technical levels may decide whether sellers extend control or buyers attempt a short-term rebound.
What Happened
Ethereum Trades Below Key Moving Averages
Ethereum closed December 30 in a clear bearish daily trend. Price remains below the 20, 50, and 200 exponential moving averages, which continue to slope downward.
Each intraday bounce has met selling pressure between $3,000 and $3,080, reinforcing short-term seller dominance. ETH has struggled to reclaim these levels, keeping the broader bias tilted lower.
Thin year-end liquidity and muted volume have added to indecision, limiting follow-through on both rallies and pullbacks.
Support and Resistance Levels Come Into Focus
On the upside, immediate resistance sits near $3,000–$3,050. A stronger confirmation zone appears between $3,100 and $3,150, where buyers would need a daily close to shift sentiment.
On the downside, ETH finds near-term support between $2,924 and $2,950. Below that, $2,800 stands out as a critical psychological and technical level.
A decisive break under $2,800 could accelerate downside pressure toward the $2,600–$2,500 region.
Momentum Indicators Remain Weak
The daily RSI is drifting toward the 30 level, suggesting early oversold conditions. While this can support brief relief bounces, it does not confirm a trend reversal.
At the same time, the MACD remains below zero, aligning with ongoing downside momentum. Moving averages remain stacked above price, signaling that sellers still control the broader structure.
Some traders also identify a developing bear flag on the daily chart. If validated with volume, the pattern favors continuation rather than recovery.
Why It Matters
Ethereum’s inability to reclaim key resistance levels keeps the market cautious. While total crypto market capitalization has stabilized near $3 trillion, ETH continues to lag relative to broader market recovery attempts.
For sentiment to improve, Ethereum must show acceptance above $3,050–$3,100 with rising volume. Without that, rallies risk fading quickly.
On the downside, failure to defend $2,800 would increase the probability of a deeper correction, especially once normal liquidity returns after the holiday period.
Conclusion
Ethereum remains trapped in a descending range, with sellers defending the $3,000 area and momentum indicators offering little support for a sustained reversal.
Until ETH reclaims key moving averages and holds above resistance, the base case stays defensive. Short-term bounces remain possible, but the broader trend continues to favor caution.
