Ethereum Alert: Why Another Monthly Close in Red Could Be Disastrous

Ethereum (ETH)  is trading near a level that may define its next move. It has compressed between a key support and visible resistance, setting up a potential breakout or breakdown as the market approaches the monthly close.

The asset is priced around $2,970 at press time. The daily range remains tight, with the 24-hour low at $2,920 and the high at around $3,050. Trading volume is above $22 billion. Over the past week, Ethereum has fallen by just over 2% and is slightly in the red daily.

$2,890 Acts as a Crucial Support Level

Analyst Crypto Patel identified $2,890 as an important demand zone. He stated that holding above this level keeps Ethereum’s broader bullish structure in place.

The asset has bounced from this level several times in recent weeks. Currently, ETH is trading just above this area. As long as the market accepts a price above $2,890, the current structure holds. A breakdown below this point would invalidate that view, bringing lower levels back into focus.

Below $2,890, prior support zones sit near $2,630 and $2,400. ETH has reacted in these areas before, but holding above current levels would prevent a retest of those zones.

On the upside, Ethereum faces resistance at $3,050–$3,150. This range has been tested several times, but ETH has yet to break through. Michaël van de Poppe said the market looks stronger, but cautioned, “Nothing confirmed.” He added that a break above this resistance could lead to a push toward $3,700.

The structure in lower timeframes shows a clear upward trend forming. However, unless ETH closes above this resistance range, momentum may stall. If the breakout occurs, traders are looking at $3,650 as a near-term target.

Indicators and Sentiment Show Mixed Signals

Some technical indicators are beginning to show movement. Dami-Defi noted that in a similar setup earlier this year, a breakout followed once the RSI moved above 50 and the MACD crossed bullishly. “We’re seeing early signs of that same setup,” he said, but pointed out that confirmation is still needed.

Analyst CW also mentioned a CME futures gap near $2,950, a level where the price is currently hovering. These gaps are often filled before trend continuation, making it a short-term area of interest.

Market Looks to Monthly Close

Crypto Patel also noted that if Ethereum closes December in the red, it will mark 75% of monthly candles in 2025 closing lower. “The monthly close matters,” he said. This would reflect a difficult year for ETH holders.

Beyond charts, sentiment around Ethereum remains mixed. Some investors point to a slower price response compared to network growth, adding to frustration among holders.

The post Ethereum Alert: Why Another Monthly Close in Red Could Be Disastrous appeared first on CryptoPotato.