Ethereum Price Compression Deepens as Analysts Debate if the Next Move Is a Rally or Breakdown

[Ben Graham]

Ethereum (ETH) has entered another period of tight price compression, a phase that has left traders split between expectations of a renewed rally and concerns about a deeper correction.

As of December 15, the Ethereum price trades near the $3,100 level, drifting sideways after several failed attempts to reclaim higher resistance zones. The narrowing range reflects hesitation across the market, with declining volumes, mixed technical signals, and contrasting institutional activity.

Despite modest intraday fluctuations, Ethereum’s broader structure shows a market waiting for direction. Trading activity has slowed compared to earlier in the year, suggesting reduced speculative participation rather than heavy distribution.

The Ethereum Price Key Levels Define the Short-Term Outlook

Support near the $3,020–$3,000 zone remains critical. This area has been tested multiple times and continues to act as a floor for price action.

A sustained break below it would likely expose the Ethereum price to a deeper pullback, with some analysts pointing to demand zones closer to $2,900 or even the $2,600–$2,500 range if downside momentum accelerates.

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 required to shift the current corrective bias and signal a trend change.

Diverging Technical Signals Add to Uncertainty

Technical interpretations remain mixed. Elliott Wave analysts argue Ethereum may be approaching a potential Wave 3 phase, which historically has coincided with strong upward moves.

However, others highlight the lack of demand strength and repeated rejections near resistance as signs that upside 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 magnet for price if momentum builds.

At the same time, thinner liquidity below current levels implies that a downside sweep could occur before any sustained rally develops.

Institutional Flows Contrast With Price Stagnation

While the Ethereum price action remains compressed, institutional involvement continues to grow. U.S. spot Ethereum ETFs recorded roughly $209 million in net inflows during the past week, led by BlackRock’s ETHA.

Separately, BitMine Immersion Technologies has continued accumulating Ether, now holding a sizable share of the circulating supply as part of a long-term treasury strategy.

This contrast between steady institutional accumulation and cautious market pricing underscores the current stalemate. For now, Ethereum remains caught between strong long-term narratives and unresolved short-term technical pressure, with a clear breakout or breakdown likely to determine sentiment in the weeks ahead.

Cover image from ChatGPT, ETHUSD chart from Tradingview