Perfect Short Hit as $2,840 Becomes Key

Key Insights:

• Ethereum rejected $2,990, confirming short-term weakness and validating short setups discussed by active traders.
• The $2,840 price zone remains a key support area as traders wait for clear reversal signals.
• Large investors continue buying ETH during the pullback, with reported purchases exceeding November totals.

Ethereum traded lower over the past 24 hours, with the price at $2,925.88 at the time of writing. The asset recorded a 1.2% decline during the day, while posting a 0.3% increase over the past seven days. Trading volume reached $20.31 billion, showing continued participation as price moved closer to key technical levels.

Price action remains active as traders adjust positions following recent market moves. Short-term strategies and longer-term accumulation activity are now shaping how participants view Ethereum’s next phase.

ETH Short Trade Executes After $2,990 Rejection

Ethereum failed to hold above the $2,990 level after a retest, confirming that prior support had turned into resistance. This move aligned with a clear short-term downtrend, defined by lower highs and lower lows. 

Trader Lennaert Snyder stated,

Following the rejection, ETH continued to move lower in a controlled manner. Snyder noted that new short positions would only be considered if price breaks below $2,900 and then retests that level. He described this setup as “a late and higher risk scalp-setup (0.5% risk),” pointing to reduced margin for error after the extended decline.

Market Focus Shifts Toward $2,840 Support

As Ethereum approaches lower price zones, attention has shifted to the $2,840 level. This area has acted as support in the past and remains closely watched by traders. Snyder described the zone by stating, “~$2,840 is a strong support level.”

Price behavior near this area is expected to take time. Consolidation and repeated tests may be required before any sustained recovery can form. 

Snyder added,

moreover, signaling that immediate long positions remain unlikely without confirmation.

Large ETH Purchases Continue During Pullback

Alongside short-term trading activity, data shows steady buying from large investors. Analyst Maartunn reported increased ETH purchases during the current price range, stating, “Big Money Moving Into ETH 👀.” Monthly investment data from Bitmine shows capital entering ETH during periods of price weakness.

Tom Lee has reportedly purchased around $953 million worth of ETH this month, exceeding the total recorded in November. These purchases occurred while ETH trades below earlier highs, indicating accumulation during a pullback rather than buying into strength.

Ethereum continues to trade between defined resistance and support zones, with traders focused on $2,900 and $2,840 as key levels. Market activity remains steady as participants respond to both technical signals and ongoing large-scale buying.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.