Ethereum Warning: Why Another Monthly Close in the Red Could Be Disastrous

Ethereum is trading near the $2,890 support zone as the price tightens, with traders keeping an eye on resistance levels and the upcoming monthly close.

The asset costs approximately $2,970 at the time of writing. The daily range remains tight, with the 24-hour low at $2,920 and the high at around $3,050. The trading volume is above $22 billion. Ethereum has fallen just over 2% in the past week and is slightly in the red on a daily basis.

$2,890 acts as a crucial support level

Analyst Crypto Patel identified $2,890 as a key demand zone. He stated that holding above this level keeps Ethereum’s broader bullish structure in place.

$ETH at a critical HTF support bend.

$2,890 is the structural demand level.
Acceptance above this level maintains the bullish market structure.

If support holds → Upward continuation towards $3,650 and $4,250.
No Hold → Bullish position invalidated.

Binary zone.… pic.twitter.com/Qv6jSZcdmz

— Crypto Patel (@CryptoPatel) December 29, 2025

The assets have climbed from this level several times in recent weeks. Currently, ETH is trading just above this area. As long as the market accepts a price above $2,890, the current structure will remain in place. A breakdown below this point would invalidate this view and bring lower levels back into focus.

Below $2,890, the previous support zones are around $2,630 and $2,400. ETH has responded in these areas before, but if it remains above current levels it would prevent a retest of those zones.

On the upside, Ethereum is facing resistance between USD 3,050 and USD 3,150. This range has been tested several times, but ETH has yet to break through. Michael van de Poppe said the market looks stronger, but warned: “Nothing confirmed.” He added that a break above this resistance could lead to a rise towards $3,700.

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The structure in lower time frames shows a clear upward trend. However, unless ETH closes above this resistance range, momentum could stagnate. If the breakout materializes, traders will be looking at $3,650 as a short-term target.

Indicators and sentiment are showing mixed signals

Some technical indicators are starting to show movement. Dami-Defi noted that in a similar situation earlier this year a breakout followed when the RSI rose above 50 and the MACD crossed bullishly. “We see the first signs of the same setup”, he said, but pointed out that confirmation is still needed.

Analyst CW too named a CME futures gap of almost $2,950, a level at which the price is currently fluctuating. These gaps are often filled before the trend continues, making it a short-term area of ​​interest.

Market resembles month-end closing

Crypto Patel too noted that if Ethereum closes December in the red, it will close 75% of the monthly candles lower in 2025. “The monthly closing is importanthe said. This would reflect a difficult year for ETH holders.

Off the charts, sentiment around Ethereum remains mixed. Some investors point to a slower price response compared to network growth, adding to frustration among holders.