Ethereum Defends Critical $2,900 Support as Traders Watch for Potential Reversal Pattern

As of December 18, 2025, Ethereum's price action is at a critical technical juncture, defending the $2,900 support level amidst the formation of a significant chart pattern. The cryptocurrency has shown resilience, rebounding from a late-November low near $2,780 and currently hovering around the psychologically important $3,000 mark. The focal point for traders is the $2,900–$2,920 zone, which has been tested as support three times in the past two weeks. Notably, each test was accompanied by above-average buy volume, indicating strong institutional or large-scale investor interest in defending this price floor. This region has taken on added significance as it now forms the neckline of a developing head-and-shoulders pattern—a classic technical analysis formation often interpreted as a potential trend reversal signal. The pattern's emergence has captured the attention of market participants, who are closely monitoring for a confirmed breakout or breakdown. Intraday chart analysis suggests active liquidity sweeps in the market, where price moves quickly to trigger stop-loss orders before reversing direction. This activity often precedes larger directional moves. The successful defense of the $2,900 support, coupled with the pattern's development, sets the stage for Ethereum's next major price move. A sustained hold above this neckline, followed by a breakout above the pattern's right shoulder, could invalidate the bearish reversal signal and pave the way for a move toward higher resistance levels. Conversely, a decisive break below $2,900 would confirm the head-and-shoulders pattern and likely trigger a sell-off toward lower support zones. The current market structure highlights the ongoing battle between bulls and bears at a key technical level, with the outcome likely to dictate Ethereum's medium-term trajectory in the evolving digital asset landscape.

Ethereum Price Defends $2,900 Support Amid Liquidity Sweep and Head-and-Shoulders Pattern

Ethereum's price hovers NEAR $3,000 after rebounding from a late-November low of $2,780. The $2,900–$2,920 zone has emerged as a critical support level, tested three times in the past two weeks with above-average buy volume. This region now doubles as the neckline of a developing head-and-shoulders pattern—a classic reversal signal that traders are watching closely.

Intraday charts reveal active demand between $2,905–$2,920, suggesting institutional accumulation at these levels. However, the failed breakout from a descending channel and persistent bearish momentum keep the near-term outlook in equilibrium. Market structure suggests the next decisive MOVE will determine whether bulls can regain control or bears will force a breakdown.

BitMine Expands Ethereum Holdings with $140 Million Purchase Amid Market Uncertainty

BitMine, a major institutional player in the ethereum market, has acquired an additional 48,049 ETH worth approximately $140 million. This latest purchase follows a previous $320 million investment, solidifying the firm's strategy of accumulating ETH despite current price pressures. BitMine's total Ethereum reserve now stands at $11.6 billion.

The move aligns with broader institutional trends, as evidenced by BlackRock's simultaneous transfer of $140 million in ETH. Such activity suggests growing confidence in Ethereum's long-term value proposition, even as the asset tests key support levels at $2,800 and $2,500.

Market observers view these accumulations as potential indicators of an impending rebound. The transactions were executed through FalconX and verified by on-chain analytics platforms including Arkham Intelligence.

Ethereum Consolidates Below $3,000 as Technical Debate Intensifies

Ethereum hovers near a critical juncture as its price struggles to reclaim the $3,000 threshold. The second-largest cryptocurrency by market cap traded between $2,900 and $2,960, down 23% from October's peak near $3,800. This pullback follows Ethereum's rejection at $3,400 earlier this month—a technical setback that triggered derivative market liquidations and dampened short-term sentiment.

Analysts point to conflicting signals. Spot demand persists while futures markets show risk reduction, suggesting this correction stems more from leverage unwinds than fundamental deterioration. Chartists highlight an inverted pattern developing near 2025 lows, with Donovan Jackson (@TheDonInvesting) among those scrutinizing whether current levels represent exhaustion or consolidation before another leg down.

The divergence between ETF inflows and price action underscores the market's transitional phase. Historical precedent suggests such periods often precede volatility spikes, particularly when derivatives positioning becomes unbalanced.

Ethereum Bullish Pattern Suggests Path Toward $8,557 Price Target

Ethereum's market structure remains bullish despite short-term pressure, with technical analysts identifying a hidden bullish divergence—a precursor to potential price resurgence. The cryptocurrency briefly touched a key resistance level at $4,811.71 before pausing, signaling a critical juncture.

A clean breakout above this level could trigger a rally toward $8,557.68, a 180% gain from current prices. Whale activity and ETF outflows introduce volatility but underscore significant market participation.

At press time, ETH trades at $2,846.57, with traders watching for confirmation of the bullish pattern.