Ethereum price today: $3480
- Ethereum’s continued decline in foreign exchange reserves and high buying activity indicate that prices may stabilize soon.
- Coinbase Premium Index and Ethereum ETF outflows show that US investors are at the forefront of selling pressure.
- Ethereum is showing signs of recovery, but a sharp decline threatens if prices break the $3,014 support level.
Ethereum (ETH) price shows signs of recovery on Wednesday as buyers return to the market to buy the dip. One expert predicts that prices could stabilize as we approach the holiday season due to a lack of institutional activity.
Ethereum bulls are coming back to withstand selling pressure from US investors
After sustaining a decline of over 12% since the Federal Reserve’s (Fed) decision on a sharp rate cut for 2025, Ethereum appears to be stabilizing around the $3,400 level.
The price stability could be caused by investors buying the price decline, as evidenced by the continued outflow across the stock exchanges. The Ethereum foreign exchange reserves chart below shows a downward trend, indicating that investors are withdrawing ETH from the exchange.
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Ethereum Exchange Reserve. Source: CryptoQuant
“Ethereum trading volume is up 45% over 24 hours, with almost 70% of that being buying activity,” James Toledano, COO at Unity Wallet, told FXStreet.
Despite some investors supporting prices by buying the dip, US investors remained at the forefront of the sell-side pressure, as evidenced by the Coinbase Premium Index. This indicator, which measures the price difference between crypto pairs in Coinbase Pro and Binance, has been in decline lately, signaling strong selling pressure among US investors.
Ethereum Coinbase Premium Index. Source: CryptoQuant
A similar trend is seen in Ethereum exchange-traded funds (ETFs). The products saw outflows for the first time since November 21 after posting net outflows of $60.5 million on Thursday – ending their 18 consecutive trading days of net inflows, according to Coinglass data.
This selling pressure from US investors is expected, given their proximity to the Fed, which triggered the market sell-off.
As the Christmas holidays approach, Toledano expects prices to stabilize due to the absence of major institutional activity.
“A relatively calm period is possible unless unexpected news reignites volatility. But with pro-Bitcoin Trump returning to the White House on January 20th, I think we can expect big price moves again very soon,” he added is.
Ethereum Price Forecast: ETH Shows Signs of Recovery, but Threatens to Fall Sharply if it Breaks the $3014 Support Level
Ethereum saw $226.45 million in liquidations over the past 24 hours, clearing $182.4 million worth of long and short positions and $44.05 million off the market, according to Coinglass data.
After posting a double top move on Monday, ETH briefly fell to $3,108 on Friday – just short of the target predicted by an earlier forecast.
ETH/USDT Daily Chart
The top altcoin quickly recovered as buyers and sellers battled at the support level near $3,400. This support level is strengthened by the 50-day simple moving average (SMA), just below it.
Meanwhile, the $3,014 support level — bolstered by the 100-day and 200-day SMAs — could prove crucial amid the recent bearish market sentiment. A breakout of high volume at this level confirms a top-rounding pattern that could send ETH price towards the psychological $2,000 level.
The key $2,817 level, a major support level for nearly four months between April and July, could provide support in the event of such declines.
The Stochastic Oscillator (Stoch) momentum indicator has recovered from oversold territory, indicating that bulls have stepped in to buy the dip.
A daily close of the candle above $3,550 will invalidate the thesis.
Ethereum FAQ
Ethereum is a decentralized open source blockchain with smart contract functionality. Its parent currency Ether (ETH) is the second largest cryptocurrency and the number one altcoin by market capitalization. The Ethereum network is adapted to build crypto solutions such as Decentralized Finance (DeFi), GameFi, Non-Fungible Tokens (NFT), Decentralized Autonomous Organizations (DAO), etc.
Ethereum is a public decentralized blockchain technology, where developers can build and deploy applications that work without the need for a central authority. To facilitate this, the network uses the Solidity programming language and the Ethereum virtual machine to help developers create and run applications with smart contract functionality.
Smart contracts are publicly verifiable codes that automate agreements between two or more parties. Basically, these codes execute coded actions themselves when predetermined conditions are met.
Staking is the process of earning a return on your inactive crypto assets by locking them into a crypto protocol for a certain period of time as a way of contributing to its security. On September 15, 2022, Ethereum switched from a Proof-of-Work (PoW) consensus mechanism to a Proof-of-Stake (PoS) in an event called “The Merger.” The merger was a key part of Ethereum’s plan to achieve high levels of scalability, decentralization and security while remaining sustainable. Unlike PoW, which requires the use of expensive hardware, PoS lowers the barrier to entry for validators by leveraging the use of crypto tokens as the fundamental foundation of its consensus process.
Gas is a unit of measurement for transaction fees that users pay to conduct transactions on Ethereum. During periods of network congestion, gas can be extremely high, causing validators to prioritize transactions based on their fees.
