Ethereum's Price Struggle: Will It Break $3,100 or Decline to $2,400?

Ethereum is hovering just beneath a pivotal price level that has caught the attention of market observers. The $3,100 level has been a ceiling for price movements for several years, with recent trading activities bringing ETH back close to that boundary.

Currently priced around $2,950, Ethereum saw a 3% decrease in the past 24 hours but has risen almost 1% over the last week. The daily trading volume stands at about $22.6 billion.

Ethereum Approaches Long-Term Resistance

Over the last five years, Ethereum has navigated through a narrowing price pattern. The chart exhibits an ascending triangle format, demonstrating rising lows and flat resistance levels ranging from $3,100 to $4,000. Analyst StockTrader_Max remarked:
"$ETH bulls have full control above $3,100," signifying that a breakout could instigate a significant price surge.

As the price nears this upper boundary, it also approaches the 50-week and 200-week moving averages which may offer extra support. A successful breakout above $3,100 could lead to a test of the $5,000 mark experienced in earlier cycles.

Concurrently, from September to November, Ethereum followed a falling wedge pattern, commonly linked to reversals. This wedge broke at the end of November, causing the price to enter a tighter range between $2,750 and $3,200.

Don elaborated that this range is currently showing signs of accumulation. If Ethereum surpasses $3,200, it may initiate a surge toward the $4,400 level predicted from the wedge breakout.

$ETH is in accumulation Link to tweet
— Don 🐂 (@DonWedge) December 23, 2025

Short-Term Pattern Indicates Potential Price Drop

On the 4-hour chart, Ethereum might be forming a head-and-shoulders pattern, often considered a reversal signal. The pattern’s left shoulder, head, and right shoulder are emerging, with the neckline positioned near $2,780.

Analyst Ali Martinez indicated:
“Ethereum appears to be forming a head and shoulders pattern, hinting at a possible drop to $2,400.”
This pattern validation only occurs with a price drop beneath the neckline; until then, the structure remains uncertain.

Meanwhile, Bitmine Immersion Technologies, under the leadership of Tom Lee, recently added 98,852 ETH to its holdings, enhancing its status as one of the largest known ETH stakeholders.

Despite recent market outflows totaling $555 million this week, 2025 is shaping up as a solid year overall, with total ETH inflows for the year at $12.7 billion, significantly outperforming the $5.3 billion recorded in 2024.