Ether price showed renewed weakness as declining onchain activity, soft futures demand, and increased selling from long-term holders raised the risk of a deeper pullback toward the $2,300 level.
Why Ether is struggling to hold $3,000
Ether has been trading around the $3,000 level for nearly three weeks, following a sharp drop to $2,620 on Nov. 21. This sideways movement suggests consolidation, but traders are increasingly questioning whether ETH can maintain its current support. A decisive break below $2,800 could trigger another leg lower.
Recent price action shows Ether slipping below $3,000 again, largely due to weak demand in futures markets and persistent selling pressure from long-term investors. At the same time, declining Ethereum network activity points to reduced onchain demand, reinforcing the bearish outlook.
Technical indicators are also flashing warning signs. If key support levels fail, ETH could face a sharp decline toward the $2,300 region.
ETH price trapped between key technical levels
Ether’s recent rebound was capped by resistance at the 50-day exponential moving average, currently near $3,260. This rejection confirms that bullish momentum remains limited.
On the downside, ETH has found temporary support in the $2,800 to $2,600 demand zone, an area that also includes the 200-week EMA. To confirm a sustained recovery, Ether must reclaim $3,000 and break decisively above the 50-day EMA. Without this move, upside potential toward $4,000 remains unlikely.
Onchain data from Glassnode highlights heavy resistance between $3,100 and $3,250, where approximately 5.9 million ETH were accumulated. Meanwhile, strong support sits near $2,800, a level where roughly 5.8 million ETH were previously bought.
Ether futures signal fading bullish conviction
Ether futures are currently trading at a modest 3% premium over spot markets, reflecting weak demand for leveraged long positions. In healthy bullish conditions, futures premiums typically exceed 5%, suggesting that traders remain cautious.
Even last week’s recovery attempt toward higher levels failed to restore confidence. This lack of conviction has coincided with a sharp reduction in long-term holder supply. Over the past 30 days, long-term investors have sold approximately 847,000 ETH, marking the largest monthly decline since January 2021 and adding further sell-side pressure.
Falling network activity weighs on ETH price
Ether’s inability to stay above $3,000 is also linked to declining Ethereum network fees. Over the past month, Ethereum generated $15.1 million in fees, representing a 45% drop compared to the previous period.
Although active addresses on Ethereum’s base layer increased slightly on a monthly basis, short-term activity has weakened. Over the past seven days, active addresses fell by 14%, while transaction counts declined by 11%, signaling slowing network usage.
Bears set sights on $2,300 ETH price target
From a technical perspective, the ETH/USD pair has confirmed a bear flag pattern on the daily chart after breaking below the $3,200 level. According to market analysts, the former support zone between $3,170 and $3,250 has now turned into resistance.
The measured move from this pattern points to a downside target near $2,300, implying a potential 22% decline from current levels. On lower time frames, a break below the $2,800 support would likely accelerate losses toward the $2,370 area.
If selling pressure intensifies and ETH falls below $2,800, the next major support zone lies between $2,716 and $2,623, where buyers may attempt to regain control.
