Ethereum Faces Pressure Below $3,000 as Institutional Buyers Continue Accumulation

Ethereum Trades in Narrow Range Below Key Psychological Level

Ethereum continues to face downward pressure as it trades around $2,940, remaining below the psychologically important $3,000 mark ^[1]. The cryptocurrency has been moving within a tight range between $2,800 and $3,050 on a weekly basis, with recent 24-hour trading showing a decline of approximately 3.5 percent ^[1].

The altcoin is currently trading in a consolidation channel between $2,690 and $3,060, with technical indicators suggesting strong resistance ahead ^[2]. The Ethereum price has dipped below the 50-week simple moving average of $3,070, indicating that bears currently have the upper hand in the market ^[3].

Major Institutional Accumulation Continues

Despite the price pressure, institutional buying has intensified. According to on-chain analytics firm Lookonchain, Tom Lee's BitMine purchased an additional 67,886 ETH worth $201 million in a 24-hour period on December 24 ^[2]. The purchases were executed through exchanges FalconX, BitGo, and Kraken, according to data from Arkham Intelligence ^[2].

BitMine now holds 4.07 million ETH on its balance sheet, valued at approximately $11.97 billion at current prices, according to data from StrategicETHReserve ^[2]. The firm is not alone in its accumulation strategy—Lookonchain also reported that a whale who had previously bought 528,272 ETH for $1.57 billion executed another large purchase of 40,975 tokens valued at $121 million in the same 24-hour period ^[2].

Technical Outlook and Key Price Levels

Buyers have attempted to start a recovery but are facing selling pressure at the 20-week exponential moving average of $3,454 ^[3]. Technical indicators including the Moving Average Convergence Divergence (MACD), the Relative Strength Index (RSI), and short-term Exponential Moving Averages (EMAs) all suggest that ETH faces strong resistance before any potential rally ^[2].

On the downside, there is support at $2,623, but analysts warn that if this level breaks, the ETH/USDT pair could plummet to $2,111 and then to $1,600 ^[3]. Buyers are expected to fiercely defend the zone between $1,600 and $1,385 ^[3].

The first sign of strength would be a break and close above the 20-week EMA, which would suggest that bears are losing their grip ^[3]. Such a move could enable the pair to attempt a rally to $4,000 and eventually to $4,956 ^[3]. Above $4,956, the pair could potentially soar to $6,194 and then to $9,030 ^[3].

Market Structure and Derivatives Impact

The current price action appears to be heavily influenced by the derivatives market, according to analysis ^[1]. Low liquidity around the holiday period may be contributing to short-term price movements ^[1]. Market observers note that the combination of rising open interest alongside falling prices reveals important insights about current market structure ^[1].

Ethereum previously pierced the $4,868 resistance in August, but the breakout turned out to be a bull trap, highlighting the challenges the cryptocurrency has faced in establishing sustained upward momentum ^[3].