Ethereum remains stuck at $2,939 as smart money refuses to buy despite a 40% decline from peak levels. The second-largest cryptocurrency needs to break above $3,345 to trigger meaningful upside movement, with current consolidation potentially extending through the new year.
Ethereum has become the crypto market's most frustrating puzzle. Trading at $2,939, down 40% from its peak, the second-largest cryptocurrency finds itself in a peculiar position where major holders refuse to sell but simultaneously avoid accumulating more positions.
Market participants face mounting uncertainty as ETH consolidates within a tight range. The asset requires a decisive break above $3,345 to unleash bullish momentum, yet current conditions suggest patience remains the dominant strategy among sophisticated investors.
Smart Money Stays Frozen Despite Deep Discount
According to cyrilXBT on X, Ethereum represents "a coiled spring that won't pop" until clearing the critical $3,345 resistance level. The observation highlights a market dynamic where accumulation has stalled despite attractive entry points.
ETH is stuck at $2,939. It's down 40% from the peak. Smart money isn't dumping, but they aren't "buying the dip" either. It's a coiled spring that won't pop until it clears $3,345.
Current price action reveals Ethereum trading near crucial support between $2,900 and $2,950. This zone represents a make-or-break level for the asset, with technical structures suggesting either explosive movement or further consolidation ahead.
The 40% decline from peak levels has pushed over 40% of ETH supply into unrealized losses. Yet whale behavior remains notably conservative, avoiding both panic selling and aggressive accumulation that typically characterizes major market bottoms.
Range-Bound Reality Could Extend Through New Year
As TedPillows noted on X, Ethereum has shown minimal movement, with predictions that significant volatility may not materialize until 2026 begins.
$ETH has gone almost nowhere since yesterday. Ethereum is still stuck in a range, and maybe we won't see any major volatility until 2026 starts.
The asset entered December trading above $3,500 but has since retreated to current levels around $2,939. Monthly data shows ETH opened December at $3,598 before declining 6.63% throughout the month, establishing a clear pattern of weakness.
Technical analysis reveals Ethereum has retraced 61.8% of its last impulsive move, a Fibonacci level where price reactions commonly occur. The consolidation phase since November 21 has kept ETH trapped below corrective channel resistance, preventing any sustained upward momentum.
Breaking above the current range requires clearing multiple resistance zones. The $3,345 level represents the first significant hurdle, followed by previous consolidation areas near $3,400 that formed during early December rallies. Until these barriers fall, sideways action appears likely to persist.
Market structure suggests Ethereum could test deeper support at $2,750 before any meaningful recovery begins. This potential liquidity sweep would trigger additional sell orders, creating conditions for a sharp bounce or extended decline depending on buying response at lower levels.
** Key Takeaways:**
- ETH trades at $2,939, down 40% from peak, with smart money avoiding accumulation despite discount levels
- Breaking $3,345 resistance critical for bullish momentum, current range-bound action may extend into 2026
- Over 40% of Ethereum supply held at loss while whale behavior remains unusually conservative and defensive
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ETH Stuck at $2,939: Smart Money Won't Buy the Dip
Ethereum remains trapped at $2,939 as smart money refuses to accumulate despite 40% decline. Breaking $3,345 resistance needed for bullish momentum return.