Ethereum (ETH) has entered another period of piercing price compression, a phase in which investors are divided between expectations for renewed growth and concerns about a deeper correction.

As of December 15, Ethereum’s price remains near the $3,100 level, drifting sideways after several failed attempts to regain higher resistance zones. The narrowing range reflects market volatility, with falling volumes, mixed technical signals and contrasting institutional activity.

Despite modest intraday fluctuations, the broader Ethereum structure shows that the market is waiting for direction. Trading activity has slowed compared to earlier in the year, suggesting a reduction in speculative participation rather than intensive distribution.

ETH's price trends sideways on the daily chart. Source: ETHUSD on Tradingview

Ethereum’s key price levels define the short-term outlook

Support near the $3,020-$3,000 zone remains critical. This area has been tested many times and continues to provide a basis for price action.

A sustained break below would likely expose Ethereum price for a deeper pullback, with some analysts pointing to demand zones closer to $2,900 or even the $2,600-$2,500 range if decline momentum accelerates.

On the other hand, resistance between $3,150 and $3,400 continues to limit recovery efforts. Ethereum remains below the major moving averages and the downtrend line that has been driving price action since November.

Analysts note that a daily close above this resistance band, supported by rising volume, would be necessary to reverse the current corrective bias and signal a trend change.

Divergent technical signals boost uncertainty

Technical interpretations remain mixed. Elliott Wave analysts argue that Ethereum may be approaching a potential Wave 3 phase, which has historically coincided with sturdy bullish moves.

However, others highlight the lack of demand strength and repeated rejections near resistance as signs that upward moves are corrective rather than impulsive.

On-chain data adds another layer of complexity. Liquidation heatmaps show dense clusters above current prices, particularly in the $3,400-$3,700 range, suggesting a potential price magnet if momentum picks up.

At the same time, less liquidity below current levels means there could be a downward bounce before any sustained upside occurs.

Institutional flows contrast with price stagnation

While Ethereum price action remains compressed, institutional involvement continues to grow. place in the USA Ethereum ETFs it reported net inflows of about $209 million last week, led by BlackRock’s ETHA.

Regardless, BitMine Immersion Technologies continues to accumulate Ether, currently keeping a significant portion of the supply in circulation as part of a long-term treasury strategy.

This contrast between steady institutional accumulation and cautious market prices highlights the current impasse. For now, Ethereum remains between sturdy long-term narratives and unresolved short-term technical pressures, with a clear breakout or breakdown likely to define sentiment in the coming weeks.

Cover image from ChatGPT, ETHUSD chart from Tradingview