Ethereum shows strong fundamentals in the long term, but short-term moves will depend on key support levels.
Notably, Ethereum (ETH) is currently trading at $2,975, marking a 1.2% decline over the past 24 hours, with the price testing major support near $2,912. On the upside, immediate resistance lies just above $3,000.
Ethereum’s performance in recent days has been relatively subdued, with gains of just 0.4% over the past week and 1.7% over the past 14 days, indicating that short-term momentum is slowing.
However, despite the short-term decline, Ethereum's fundamentals remain strong. The increasing number of staking entries, coupled with institutional purchases like Bitmine's acquisition of 44,463 ETH, indicates long-term confidence in the network. Nevertheless, in the short term, Ethereum's price trend will depend on whether it can hold support and break through resistance.
Ethereum needs to close beyond this support
From a technical perspective, Ethereum is testing the 0.236 Fibonacci retracement level at $2,934.93 and the next resistance zone is around the 0.382 Fibonacci level at $3,032. A breakout of this level could open the door for Ethereum to target the 0.5 level at $3,111, suggesting a possible continuation of the recent uptrend.
Ethereum daily chart
On the downside, the 0.236 Fibonacci retracement at $2,934 acts as a key support and ETH needs to close above this level to maintain the position. If Ethereum fails to close above this support, it could fall towards the $2,700 to $2,800 range.
Meanwhile, the momentum indicator is showing a positive change and the Stochastic RSI is in overbought territory at 82.97, indicating strong buying pressure. However, the blue line touches overbought territory, so be careful. Ultimately, whether Ethereum can break above major supports and through resistance will determine its near-term direction.
Ethereum entry queue exceeds exit queue
Looking elsewhere, Abdul, head of DeFi at Monad, said: share In an interesting update, we note that for the first time in six months, Ethereum validator entry queues have exceeded exit queues.
Ethereum validator queue
This change signals increased confidence in Ethereum's long-term prospects and is reminiscent of June, when ETH doubled shortly after a similar move preceded a significant price spike.
Additionally, institutional interest in Ethereum remains strong, with large purchases continuing during the holiday season. Last week, Bitmine obtained 44,463 ETH, total holding amount is 4.11 million ETH.
