Ethereum, the second-largest cryptocurrency by market value, has been under pressure for months. After peaking near $4,953 in August, ETH has fallen almost 40% and is now trading close to the $3,000 mark.
This long decline has tested investor patience, especially as the overall crypto market searches for a clear direction.
ETF Outflows and Whale Selling Add Pressure
One major reason behind Ethereum’s weak price action is continued selling pressure. Spot Ethereum ETFs recorded seven straight days of outflows, signaling reduced institutional demand. Meanwhile, leading this outflow charge was BlackRock ETHA with almost $558.1 million in just the past 5 days.
Although on 22nd Dec alone Eth ETF recorded an inflow of $84.6 million after 7 days of outflow.
At the same time, on-chain data shows that whales sold nearly $360 million worth of ETH in just one week. This steady selling has made it harder for Ethereum to push higher, even when the market shows brief signs of recovery.
$3.8B of ETH Options Expiry this Week
Beyond this, traders are closely watching December 26, when a record number of crypto options will expire on the Deribit exchange. Nearly $28.5 billion in options contracts are set to roll off, including about $3.8 billion in Ethereum options.
According to a CoinPedia report, Ethereum’s max pain level is near $3,100, meaning price action could become volatile as expiry approaches.
BitMine Immersion Buy $88.1 ETH
While many investors are selling, not everyone is stepping away. BitMine Immersion Technologies, led by Fundstrat’s Tom Lee, recently added 29,462 ETH worth $88.1 million to its treasury.
This came shortly after a much larger $300 million purchase earlier in the week. These moves suggest that some long-term players see value at current levels.
Analysts See Massive Breakout, Eyeing $7000
Ethereum has struggled to move back to its earlier highs and has failed several times to break above the $3,200 level. This area has now become a strong resistance, keeping the ETH price capped in the short term.
Top crypto trader Michael van de Poppe believes this repeated testing of resistance is actually a positive sign. According to him, when a price tests the same level many times, it usually means selling pressure is getting weaker.
If ETH finally breaks above resistance, he expects the next move toward the $3,650–$3,700 zone.
Supporting this view, another analyst, Bitcoinsensus, sees a bullish chart pattern forming on the daily timeframe. He notes that Ethereum is building a right-angled descending broadening wedge, a structure that often breaks upward. Based on this setup, he believes Ethereum could first target $5,000, with a further move toward $7,000 if market conditions remain strong.
Still, some crypto experts warn that if Ethereum fails to break higher, the chart could point toward a deeper pullback into the $2,100–$2,300 zone.
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