Ethereum is facing a challenging period after dropping 23.93% in the last 30 days and 11.83% in the last 7 days, bringing the price to $3,073. Market sentiment is shaky but not broken, and traders are now focused on a cluster of critical support levels that could determine ETH’s next major direction.

Key levels in play include:

• $3,000: primary short-term support (bullish wedge support)

• $2,900: secondary support if $3K breaks

• $2,150 zone: Deeper demand zone for deeper corrections

• $3,800: The major resistance bulls must reclaim to restore strong bullish momentum

The big question: Can Ethereum hold above $3,000 long enough to fuel a meaningful recovery into 2026?

Ethereum’s decline is not happening in isolation. Market-wide liquidity remains thin, risk assets are under pressure, and Bitcoin’s volatility has weighed on altcoins. Still, ETH’s current structure is not decisively bearish.

Several factors are supporting stability:

• The bullish wedge pattern is still intact

• DeFi activity remains stable, though not aggressive

• Staking participation continues rising, supporting long-term scarcity

• L2 ecosystems like Arbitrum, Optimism, and Base remain active

• The upcoming  December Fusaka upgrade

But challenges remain:

• ETH is underperforming BTC in the short term

• Whales have reduced accumulation over the past few weeks

• Retail interest is low compared to earlier in the year

This mixed environment makes the $3,000 level even more important.

Looking at the chart, the bearish month has pushed ETH back into a long-term support region. However, sellers have not broken the wedge structure yet.

If $3,000 holds:

• ETH can rebound toward $3,450, then $3,800

• A breakout above $3,800 could trigger a late-year trend reversal

• Momentum indicators hint at a possible bounce forming

If $3,000 breaks and closes below $2,900:

• ETH may drop toward the $2,150–$2,200 range

• This deeper zone has historically triggered strong reversals

• Long-term buyers may step in aggressively there

Source: X

The question to consider now is: Is the current retracement just a healthy cooling period for ETH before its next strong cycle, or just a fresh start to a major correction? Many analysts believe the first statement, but only if bullish momentum is witnessed at the current strong support zone.

These estimates consider current market structure, historical volatility and typical ETH behavior during long consolidations. The year-end range reflects the possibility of a moderate recovery, especially if Bitcoin stabilizes and capital rotates back into altcoins.

Bullish catalysts:

• A breakout above $3,800

• Rising ETH staking participation

• Strong adoption of L2 networks

• Renewed institutional flows into crypto

• A Bitcoin recovery that restores broader risk appetite

Bearish catalysts:

• Breakdown below $2,900

• Continued weakness in risk markets

• Declining DeFi activity

• Negative macroeconomic developments

Bullet point to remember: 

ETH does not need explosive upside to remain healthy, it only needs to maintain its long-term structure above $2,900.

Ethereum is at a make-or-break level. Holding above $3,000 will determine whether ETH ends 2025 in recovery mode or slides toward a deeper correction. The trend is still salvageable, and the bullish wedge pattern suggests the market may attempt a rebound soon.

A question worth asking: If ETH retests $2,900 or even $2,150, would that be a risk or an opportunity? Historically, such deep pullbacks have given long-term investors attractive entry points, but this would need a reversal confirmation and bullish momentum build-up.

For now, ETH remains a structurally strong asset facing a temporary challenge,  and the next two months will likely shape the narrative moving into 2026.