Key Insights:
- Ethereum defends its uptrend line again, bouncing from $2,900 with buyers still active.
- A bullish inverse head and shoulders pattern is forming, with neckline near $5,000.
- December monthly close above the 50-day MA could open the door toward $4,000.
Ethereum (ETH) continues to hold above a key uptrend line that has been in place since May 2025. This line has acted as support during several market pullbacks. Each time price approached the trend, buyers stepped in and prevented a breakdown. Most recently, ETH bounced near $2,900, again showing that the trend remains in effect.
The market has seen price volatility, but the trend line has not been broken. This pattern of higher lows since May suggests steady buying pressure. The projection on the chart shows a potential move toward $4,000 if the structure continues to hold. Traders are monitoring this level while price remains stable above the trend.
Resistance at 50-Day Moving Average
ETH was trading near $2,973 at the time of writing. The 50-day moving average, currently just above $3,000, has acted as resistance since September. The price has not closed above it since then. One trader commented, “Only when this MA is flipped to support can we get excited for a reversal here.” Until that happens, this level remains a barrier for short-term price movement.
On the daily chart, ETH was trading inside a descending broadening wedge. This pattern has been forming over the past several months. Price was moving between the 0.5 and 0.618 Fibonacci retracement levels, which are near $3,167 and $2,746. These levels are being watched for signs of either continuation or reversal.
Weekly Structure Shows Base Formation
On the weekly timeframe, ETH was forming an inverse head and shoulders pattern. The left shoulder appeared in mid-2024, the head in early 2025, and the right shoulder formed in the final quarter of the year. The neckline is drawn just under the $5,000 mark. Price is currently near the bottom of the right shoulder.
A move above the neckline would confirm the pattern and could push price toward $7,000 or higher. Until then, the pattern remains in development. Price holding in this area adds to the view that buyers are still defending the broader structure. The setup is being watched for further confirmation in early 2026.
Monthly Close Remains in Focus
Traders are watching the December monthly close. If ETH finishes the month above the trend line, it will support the current structure. A close above $3,000 and the 50-day moving average could open the way toward the $4,000 level.
Despite short-term weakness, the overall structure has not broken. The series of higher lows and a stable trend line continue to support the view that the broader move remains in place.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
