ETH Monthly Close Under Pressure: Another Red Candle Could Trigger Sharp Decline

Ethereum finds itself at a critical juncture as the monthly candle approaches its final days. The asset is currently trading around $3,300, but the bigger concern for many traders isn’t today’s price—it’s where ETH closes when December wraps up. According to analysis, a red monthly close would mark a troubling pattern: 75% of all monthly candles in 2025 ending lower. That’s a staggering statistic that highlights just how challenging the year has been for ETH holders.

The Squeeze: Price Compressed Between Two Critical Levels

Over the past 24 hours, Ethereum has retreated 2.07%, while the 7-day chart shows a modest recovery of 6.23%. What’s notable is how tightly the price has been boxed in. ETH oscillates between the $2,890 support zone and the $3,050–$3,150 resistance band. This compression typically signals an impending move, though which direction remains uncertain.

The 24-hour trading volume stands at $613.89M, with intraday swings ranging from $3.27K (low) to $3.38K (high). For traders watching closely, this narrow range is both a blessing and a curse—opportunity awaits, but so does risk.

Support Holding the Line at $2,890

Crypto Patel has flagged $2,890 as the level that truly matters. Holding above this zone is essential for maintaining the broader bullish narrative. ETH has bounced from this area repeatedly in recent weeks, suggesting it acts as genuine demand. Should Ethereum slip below $2,890, the technical picture deteriorates considerably.

If support breaks, prior demand zones sit at $2,630 and $2,400. These aren’t arbitrary numbers—they represent levels where ETH has historically found buyers before. However, staying above the current support would prevent such retests from occurring.

Can ETH Break Through the Upper Resistance?

On the flip side, Ethereum faces stiff resistance between $3,050 and $3,150. This zone has been tested multiple times, yet bulls have failed to establish a sustained breakout. Michaël van de Poppe noted that while market conditions look “stronger,” he emphasized that “Nothing confirmed” until ETH actually breaks this range decisively.

A successful breakout could open the door to $3,700, with $3,650 serving as an immediate target. Conversely, failure to break this resistance invites price stalling and potential downside retest of support.

Technical Indicators: Early Signals Emerge

Mixed signals characterize the current indicator landscape. Dami-Defi observed an intriguing pattern: earlier in the year, a similar setup preceded a significant breakout once the RSI moved above 50 and MACD crossed bullishly. “We’re seeing early signs of that same setup,” he noted—though crucially, confirmation hasn’t arrived yet.

CW highlighted another technicality: a CME futures gap sits near $2,950, precisely where ETH is currently hovering. These gaps typically get filled before major trend moves, making this level a short-term focal point for traders.

Why the Monthly Close Matters More Than Daily Noise

This brings us back to the crux of the issue. A red December close wouldn’t just be another bearish day—it would cement an uncomfortable reality for ETH investors. Seventy-five percent of 2025’s monthly candles already closing lower signals sustained weakness that overshadows smaller daily recoveries.

The frustration is compounded by sentiment concerns. Some market observers note that Ethereum’s price performance hasn’t kept pace with network growth metrics, creating a disconnect that weighs on investor confidence.

The next few days are crucial. ETH must either break resistance convincingly or hold support to avoid further deterioration in monthly structure. For now, the squeeze persists—and trading at the intersection of support, resistance, and a deadline adds urgency to what comes next.