ETH Investment Alert: Increased Risk of Short-term Pullback

In early December 2025, Ethereum (ETH) experienced a pullback after encountering strong resistance near $2,985, and is currently hovering around the $2,800 support zone. Investors remain cautious about the short-term outlook.

Technical Analysis: Significant Pullback Pressure

During the recent uptrend, ETH made multiple attempts to break through the $2,985 resistance level but failed to hold above it, leading to a short-term retreat. The daily chart shows that ETH is approaching the key support at $2,800. If this support is breached, the price may further test the $2,700 level.

The Relative Strength Index (RSI) indicates that Ethereum has retreated from the overbought zone to a neutral range in the short term, but there is still some downward pressure. The moving averages (MA) show signs of flattening in both short-term and long-term lines, suggesting a high probability of price consolidation. In terms of trading volume, the recent pullback has been accompanied by a slight increase in volume, indicating heightened market caution towards downside risks.

Market Sentiment and Macro Factors

Ethereum’s price is influenced not only by technical factors but also by overall market sentiment and the macroeconomic environment. Recently, the crypto market has become more volatile, investor risk appetite has declined, and fluctuations in Federal Reserve policy and the US dollar index have also pressured ETH prices.

With market sentiment turning cautious, investors should act more rationally in the short term and avoid chasing gains or panic selling to reduce the impact of volatility.

Investment Strategy Recommendations

Facing short-term pressure on ETH, investors may consider the following strategies:

1. Focus on key support and resistance: Closely monitor the $2,800 support and $2,985 resistance levels, and adjust positions flexibly.
2. Set stop-loss orders: Place stop-loss orders near the lower support to control potential losses.
3. Diversify investments: Combine ETH with other quality digital assets to spread risk and reduce the impact of volatility on a single asset.
4. Plan from a long-term perspective: The Ethereum ecosystem continues to develop, including applications such as smart contracts, decentralized finance (DeFi), and NFTs, maintaining long-term potential.

Outlook

In the short term, ETH faces a critical test at the $2,800 support level, and investors should closely watch whether this support holds. If the support is maintained and a rebound signal emerges, prices may regain upward momentum. If the support fails, the risk of further decline to $2,700 or lower will increase.

Overall, rational judgment and sound position management are key to navigating price fluctuations. Investors should combine technical analysis, macro considerations, and market sentiment for comprehensive analysis and avoid emotional trading.