Ethereum Faces Tough December but History Points to a 2026 Reset

Ethereum is heading into the final stretch of December under pressure, yet market watchers are not ruling out a positive monthly close. Milk Road highlighted that Ethereum has survived one of its toughest quarters in recent years, marked by steady selling and fading momentum.

Still, history shows that some of Ethereum’s strongest rebounds have followed similar periods of sharp quarterly declines. That pattern keeps hopes alive for a green December, even if the broader trend remains uncertain.

What draws more attention, however, is not just how December ends, but what follows next. Previous market cycles suggest that quarters like this often act as a reset rather than a breakdown.

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Extended corrections have, in the past, cleared excess leverage and weak positioning, creating space for stronger recoveries later on. With 2026 approaching, many view the current phase as groundwork rather than an ending.

Also Read: Ethereum Whale Buys $121 Million in ETH as Price Eyes Key Support Level

Ethereum Enters Final Leg of a Broader A-B-C Correction

From a technical analysis point of view, the Ethereum network is experiencing a massive pullback following a strong escalation in the previous periods.

ETH had reached a point of around $4,600-$4,800, and the buyers looked tired; therefore, a pullback commenced in a standard correction A-B-C formation. Initially, there was a massive sell-off triggered by the first drop. The current market is experiencing the final stages of the correction.

Analyzing the larger picture, one market analyst stated that when you take a larger time perspective, there is still no definitive eventual low in wave B.

As long as ETH is below the falling line, there is still potential in making another lower low. The applicable downside target is $2,267, which corresponds to an essential Fibonacci level.

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Fibonacci levels from the most recent rally still influence market perspectives. The level at 0.5, around $2,630, and the 0.618 level at $2,260 is turning out to be a major area where market participants may return to buying Ethereum. Ethereum is currently above the 0.5 level.

Key Support Zone Keeps ETH’s Long-Term Trend Intact

The momentum indicators reveal that Ethereum is in a correction phase but not in disarray. The RSI on a weekly chart crossed below the previous support level and is headed to the 30-40 region, where there have been midterm bottoms in larger rallies in the past, indicating that the sellers’ strength may have peaked.

Despite the weakness, however, the overall structure remains intact so long as ETH remains above the $1,380 to $1,500 level. This maintains a technically valid long-term uptrend.

To take charge of the trend once again, a move back above the $3,200 to $3,400 level is essential, which is currently a major level of resistance after having been a zone of previous support.

Also Read: Ethereum Lags Behind Bitcoin as Past Cycle Pattern Repeats in 2025