trading volume slowed substantially in December, leaving the crypto market largely unchanged as the year closed, but Bitcoin has found support near $86,000 despite struggling to surpass $90,000.
Ethereum Faces Ongoing Headwinds
The second-largest cryptocurrency is battling to sustain a recovery, but key resistance levels remain unbroken.
- Ethereum is currently trading within a clear downward channel, indicating consistent selling pressure.
- The $3,080 to $3,300 range is critical for a potential trend shift, but a breakout above $3,080 is needed.
- Solana is searching for a bottom after breaking its main uptrend, while BNB is stuck in a sideways pattern.
Looking at Ethereum, Solana, and BNB-which collectively represent roughly 20% of the crypto market-the broader correction that began after peaks in late 2025 appears incomplete. Ethereum is attempting a rebound, but momentum is weak, failing to breach meaningful resistance points.
Ethereum is presently confined within a defined downward channel. This pattern demonstrates steady selling pressure, with both highs and lows trending lower over time. Any upward movements tend to stall near the channel’s upper boundary or around key moving averages. A genuine trend reversal requires Ethereum to break above the channel’s top and then establish a pattern of higher highs and higher lows.
Fibonacci levels on the daily chart pinpoint crucial short-term levels. Ethereum remains below the 0.50 Fibonacci level around $3,080. Short-term moving averages, clustered between $2,960 and $2,990, are flat and continue to act as resistance. The three-month EMA near $3,300 presents a stronger barrier.
Consequently, the $3,080 to $3,300 range is pivotal for any early trend change. Without consistent daily closes above $3,080, the current bounce is highly likely corrective rather than a sustained uptrend. Holding above $3,300 could bring upside targets of $3,480 and $3,970 into focus.
On the downside, $2,830 is the first support level to watch. A fall below this area, coupled with the continuation of the downtrend, could lead to further declines, with the next key support near $2,680, align
