Ethereum Price Prediction Summary

Author: Alejandro Arrieche

Published: December 23, 2025

Key Points

• Ethereum (ETH) has experienced a 3.7% decline in the past 24 hours, failing to surpass the $3,000 mark.
• Trading volumes have increased by 16%, representing 6% of ETH's circulating market cap.
• Liquidation data indicates that $266 million in long positions were wiped out during the downturn.
• Ethereum ETFs saw a reversal with an inflow of $86 million, breaking a 7-day streak of net outflows.
• During the previous week, approximately $700 million was withdrawn from Ethereum ETFs, highlighting bearish momentum.

Market Sentiment and Open Interest

Despite the Federal Reserve's recent interest rate cut, market sentiment remains negative, with the Fear and Greed Index at 29, indicating panic. Open interest (OI) in Ethereum futures has risen from 10.9 million contracts to 12.9 million, suggesting increased trader participation, though it may indicate a buildup of short positions as traders anticipate further declines.

Technical Analysis

Ethereum's weekly chart has issued a strong sell signal after dropping below the 100-day exponential moving average (EMA). Historical data shows that similar occurrences led to significant price drops of 49% in May 2022 and 37% in February 2025. Currently, ETH is at risk of falling to $1,600 if it cannot reclaim the EMA, which would represent a potential 40% loss from current levels.

To confirm a bearish outlook, ETH must drop below $2,800, which would breach a key structural support level. Conversely, if ETH remains above $2,800, it may retest $3,900 before potentially declining further.

Investment Strategy

Investors are advised to consider downsizing long positions if ETH recovers to $3,900, as the market appears fragile. The Relative Strength Index (RSI) also supports a bearish outlook, having fallen below the 14-day moving average and indicating strong negative momentum.

Conclusion

The current state of Ethereum suggests a cautious approach for investors, with significant risks of further declines if key support levels are breached. Monitoring market conditions and technical indicators will be crucial for making informed trading decisions.