- Ethereum is trading near $3,000, facing downward pressure from ETF outflows, whale selling, and reduced network activity.
- A planned January gas upgrade aims to boost throughput and lower fees, offering potential support for the price.
Ethereum (ETH) trades near $3,000 amid ongoing market pressure, leaving investors debating whether it has found a bottom or faces another leg lower. Recent price drops and institutional activity highlight the challenges facing the second largest blockchain network.
ETH Faces Downward Pressure
Ethereum’s price recently fell by 4% intraday, dipping below key support levels around $2,900 to $2,775. The cryptocurrency reached a low of $2,775 before entering a consolidation phase, with short-term bears maintaining control. Current trading sees ETH below the 100-hour Simple Moving Average, signaling continued downward pressure.
On-chain metrics also indicate a decline in network engagement. Weekly active addresses have fallen to mid-year lows, reflecting declining user participation that coincides with recent price weakness. Analysts note that immediate resistance levels are $2,850 and $2,880, while a break above $2,925 could open the path toward $3,000 and possibly $3,080. Conversely, failure to hold $2,775 could push ETH toward $2,640 or $2,620.
Institutional Investors Take a Step Back
Institutional sentiment shows caution, with U.S. spot Ethereum ETFs recording outflows exceeding $224 million. BlackRock’s ETHA fund alone accounted for $221.3 million of these outflows, reducing total ETF net assets by nearly $3 billion since mid-December.
$ETH ETF outflow of $224,200,000 🔴 yesterday.
BlackRock sold $221,300,000 in Ethereum. pic.twitter.com/HFVRtmo3b1
— Ted (@TedPillows) December 17, 2025
Adding to the pressure, whale wallets have sold over 28,500 ETH in recent transactions, while last week’s 12% correction triggered more than $200 million in liquidations across leveraged positions. These combined factors have intensified selling momentum and short-term weakness.
Network Upgrade Offers Potential Support
Amid price volatility, Ethereum developers are moving forward with a planned gas limit increase from 60 million to 80 million units. Scheduled to follow the January 7 hard fork, the upgrade aims to boost network throughput and lower transaction fees. Christine Kim of Galaxy Digital confirmed developers are ready, while Barnabas Busa of the Ethereum Foundation highlighted ongoing technical preparations required for execution layer and consensus optimizations.
What Traders Should Watch
Key support and resistance levels will likely dictate Ethereum’s near-term trajectory. Bulls must reclaim $2,925 and $3,000 to shift the trend, while a break below $2,775 could signal further downside. Traders are also watching ETF activity, whale movements, and network upgrade progress for indications of renewed strength.
$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
Ethereum’s short-term outlook remains cautious, with a combination of technical, institutional, and network factors shaping the market as it hovers around critical support.
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