Ethereum (ETH) Price: Has the Bottom Been Reached, or Is Another Leg Lower Coming in 2025?
Ethereum's price action is putting traders on edge. The question isn't just about direction—it's about conviction.
The Bull Case: Signs of a Foundation
Support levels are being tested, not shattered. On-chain metrics whisper of accumulation, not panic selling. The network's fundamental utility—from DeFi to NFTs—hasn't vanished; it's just waiting for the next macro tailwind. Some analysts point to historical cycles, suggesting this consolidation phase is a classic setup before the next major move.
The Bear Argument: Gravity's Persistent Pull
Resistance overhead remains thick. Each rally attempt gets met with selling pressure, a classic sign of a market still finding its true floor. Broader financial uncertainty continues to cast a long shadow over all risk assets, crypto included. Until a decisive, high-volume breakout occurs, the path of least resistance could still be down—another leg lower isn't just possible, it's the default for many cautious charts.
The Verdict: A Battle of Narratives
This isn't just about charts; it's a clash of stories. One story sees value being built in silence. The other sees a dead cat bounce before the next drop—a favorite pastime for traditional finance pundits who still think blockchain is just for buying cartoon apes. The market will decide which narrative wins, but for now, Ethereum is stuck in the trenches, with both bulls and bears digging in. Place your bets accordingly.
TLDR
- Ethereum is trading near $3,000 after a 4% intraday drop and is testing key support levels around $2,900 to $2,775.
- A planned gas limit increase from 60 million to 80 million units is scheduled after the January 7 hard fork to improve network throughput.
- Ethereum ETFs recorded over $224 million in outflows, with BlackRock’s ETHA fund leading the institutional selling pressure.
- Whale wallets sold over 28,500 ETH recently, while last week’s 12% correction triggered more than $200 million in liquidations.
- Technical analysis shows key resistance at $2,925 and $3,000, with potential downside targets at $2,775 and $2,720 if support fails.
Ethereum is trading near critical support levels as the second-largest cryptocurrency by market capitalization experiences continued downward pressure. The price dropped below $2,920 and $2,900 this week, with bulls attempting to hold the line around $3,000.
The cryptocurrency reached a low of $2,775 before entering a consolidation phase. Current trading activity shows ETH hovering below the 100-hour Simple Moving Average, with bears maintaining control of short-term momentum.
On-chain data reveals declining network engagement. Weekly active addresses have dropped to mid-year lows, indicating reduced participation from users. This decline in activity has coincided with the recent price weakness.
A bearish trend line has formed with resistance at $2,925 on the hourly chart. The immediate resistance levels sit at $2,850 and $2,880, with the 50% Fibonacci retracement level marking a key technical zone.
If bulls can push the price above $2,925, the next targets WOULD be $3,000 and potentially $3,080. A clear break above $3,000 could open the path toward $3,120 in the near term.
Network Upgrade Plans Move Forward
Ethereum developers are preparing for a gas limit increase from 60 million to 80 million units. The upgrade is scheduled to take effect after the January 7 hard fork, pending final confirmation from the All Core Developers meeting.
The recent Fusaka upgrade set the foundation for ongoing network growth.
Learn more about how EIP-7935, gas fee increases, helped set the stage for what’s coming next on Ethereum. pic.twitter.com/8tDEfxlGPZ
— ethereum (@ethereum) December 9, 2025
Christine Kim, VP of research at Galaxy Digital, confirmed that developers are ready to implement the change. The upgrade aims to enhance network throughput and reduce transaction fees for users.
Barnabas Busa of the Ethereum Foundation noted that execution layer and consensus optimizations must be completed before the upgrade can proceed. These technical preparations are currently underway.
Institutional Activity Shows Caution
U.S. spot Ethereum ETFs have experienced sustained outflows in recent weeks. Total outflows exceeded $224 million, with BlackRock’s ETHA fund accounting for $221.3 million of that amount.
$ETH ETF outflow of $224,200,000
yesterday.
BlackRock sold $221,300,000 in Ethereum. pic.twitter.com/HFVRtmo3b1
— Ted (@TedPillows) December 17, 2025
Total ETF net assets have declined by nearly $3 billion since mid-December. This represents a measured reduction in institutional exposure to Ethereum through regulated investment products.
Whale wallets have also been active sellers, offloading more than 28,500 ETH in recent transactions. This selling pressure has contributed to the current price weakness.
Last week’s 12% correction triggered liquidations exceeding $200 million across Leveraged positions. The liquidation cascade added to the downward momentum as forced sellers entered the market.
Technical Levels Define Near-Term Path
Key support levels for Ethereum are located at $2,800, $2,775, and $2,720. A breakdown below $2,775 could push the price toward $2,640 or the next major support at $2,620.
$ETH retested the $2,800 level as expected.
If Ethereum holds this zone, a rally towards the $3,000 level could happen soon.
A failure to hold this zone will dump ETH to $2,500. pic.twitter.com/ilTHrT9mnX
— Ted (@TedPillows) December 18, 2025
The chart shows higher lows on the weekly timeframe, which some traders interpret as a constructive pattern. However, this pattern needs confirmation from increased volume and sustained buying pressure.
Resistance levels at $2,925 and $3,000 represent the immediate hurdles for any recovery attempt. Bulls need to reclaim these levels to shift the short-term trend back in their favor.
The 23.6% Fibonacci retracement level from the recent swing high to low is providing some temporary support during the current consolidation phase.
