Ethereum (ETH), the second-largest cryptocurrency, is currently trading near $2,900 after dropping by over 12% in the past week. Even with this decrease, Ethereum is still holding above a critical level that traders are watching closely. They are trying to figure out if the price will rise toward $4,300 or fall further.
What is Ethereum?
Ethereum is a special kind of blockchain platform. It does not only handle transactions like Bitcoin but also lets people create decentralized applications (apps that don’t need a middleman). Its cryptocurrency is called Ether (ETH). You can learn more about Ethereum here.
Technical Analysis: Key Levels
Crypto analyst StockTrader_Max explained that Ethereum’s price is holding at an important level called the 0.618 Fibonacci retracement. This is a technical method that traders use to predict support and resistance levels based on the Fibonacci sequence. You can read more about Fibonacci retracement here.
$ETH is holding above its 0.618 FIB well..
A bounce here is expected with the next destination being $4,300— StockTrader_Max (@StockTrader_Max) December 16, 2025
According to analysts, the current price near $2,940 might signal a turning point. It suggests that Ethereum may start moving back up after finishing a corrective phase, which is a temporary dip before prices rise again. Analysts believe Ethereum could reach $4,300 as its next target. But, this prediction is valid only as long as Ethereum stays above $2,630. If Ethereum’s price decreases below $2,630, the positive outlook weakens. And if the price falls below $1,390, this prediction becomes invalid.
Can Ethereum Start Rising?
Another analyst named Don shared a chart showing that Ethereum might break out of a “falling wedge” pattern on the 5-day chart. A falling wedge is a chart pattern that happens when prices make lower highs and lower lows, but the range gets tighter over time. It can often signal that a price increase is coming. You can read more about falling wedges here.
Although Ethereum lost support in shorter time frames like the daily and 3-day charts, the bigger time frames like the 5-day and weekly charts still look strong. For instance, the weekly moving averages (average prices over time) are acting as support near $2,720. Don believes that the next target from this wedge pattern could be around $4,400. However, these price changes might not happen fast. Don described this slow movement as “slow cooking for $ETH,” implying that potential gains could take time.
In addition, another analyst called Man Of Bitcoin shared an observation from the weekly chart where Ethereum’s RSI broke above a downward trendline. RSI, or Relative Strength Index, is a tool that measures whether a cryptocurrency is overbought (too expensive) or oversold (too cheap). A break like this could indicate an upward trend is on its way. Learn more about RSI here.
Mixed Opinions
Even though some charts suggest recovery, not all analysts agree. Another expert, Ali Martinez, warned that if Ethereum closes December below $2,930, its price could fall to $2,000, or even $1,100.
“Closing December below $2,930 could send Ethereum to $2,000, or even $1,100.”
Similarly, Max Crypto highlighted that Ethereum’s performance for December is currently negative. If the month ends with more losses, it will be the ninth red (negative) month this year. This kind of pattern has only happened once before in 2018.
Large Buyers Step In
On the brighter side, some big investors seem to be buying more Ethereum. For example, BitMine Immersion Technologies purchased over 100,000 ETH last week, valued at more than $300 million. This shows that while small traders might be selling, large buyers are stepping in. This could support Ethereum’s price and bring some optimism.
Conclusion
Ethereum’s price is at a critical point. Some experts think it could bounce back toward $4,300, while others fear it might drop to $2,000 or lower. Market signals are mixed, but big investors buying may give hope for future growth. If you are watching Ethereum, keeping an eye on key levels like $2,930 and $2,630 can help gauge its next move.