The cryptocurrency market is witnessing significant activity as Ethereum (ETH) maintains its position above the critical support level of $3,000. As of December 6, 2025, ETH was trading at approximately $3,023. This resilience is noteworthy in the context of recent market volatility and reflects a cautious yet growing institutional interest.
Market analyst @TedPillows emphasized the importance of the $3,000 threshold, stating that a drop below this level could lead to a decline towards the $2,800 range. Historically, when ETH has broken below $3,000, it has faced declines of 20-25%, influenced by increased exchange inflows and diminished spot liquidity.
Currently, Ethereum is trading within a range between $2,720 and $3,041. This price action is occurring amid a backdrop of reduced risk appetite and cooling futures open interest, alongside ongoing ETF outflows that have slightly weakened demand.
Despite the prevailing cautious sentiment, there has been a notable uptick in institutional participation. Data from Arkham Intelligence reveals that Bitmine, a firm guided by seasoned strategist Tom Lee, acquired a substantial 64,622 ETH, valued at approximately $199.45 million, through verified transactions within a single day. Such large-scale accumulation typically suggests a long-term investment strategy rather than mere speculative trading.
However, the overall market sentiment remains fragile, with the Crypto Fear & Greed Index indicating “extreme fear” at a reading of 21. This sentiment often correlates with heightened liquidation risks and a risk-off environment. The latest report from CoinShares highlights that recent outflows from institutional products have further contributed to the selling pressure, particularly during times of declining spot trading volumes.
Technical indicators currently present a mixed picture. On the daily chart, the MACD shows a bearish crossover, signaling weakening momentum. The Relative Strength Index (RSI) is at 46, suggesting a neutral market stance but leaving room for potential reversals if buying strength returns. Meanwhile, crypto strategist CryptoKing4Ever noted a breakout from a symmetrical triangle pattern on a shorter timeframe, projecting potential upward targets near $4,500, contingent on volume and market conditions.
Traders are closely monitoring the key liquidity zones and order-book depth to gauge potential downside risks. If Ethereum cannot sustain its support around $3,000, analysts are watching for potential declines to $2,787, while upside targets could extend to $3,225 if the support holds firm.
Looking forward, Ethereum”s consolidation around $3,020 reflects a tug-of-war between institutional accumulation and cautious market sentiment. Despite structural improvements in the Ethereum network that enhance transaction throughput and reduce congestion, ongoing ETF outflows and mixed momentum indicators remain significant challenges. A confirmed daily close above $3,100 would bolster the bullish case, whereas a decisive break below $3,000 could steer momentum towards the $2,800-$2,780 liquidity zones.
As traders await clearer signals, the $3,000 support level is poised to play a crucial role in determining Ethereum”s next significant price direction.
