Skip to content
- Ethereum nears month end as selling pressure threatens December close
- ETH struggles below $3,000 as volume drops and dominates trading
- Large wallet moves and exits deepen caution across Ethereum markets
Ethereum is entering the final stretch of the month under intense pressure from persistent selling. The current price action is putting the asset on the path of one of the worst December performances. Ether has fallen by 13.92% over the last 365 days, a drop that has drawn concern from traders tracking long-term seasonal patterns.
Analyst Ted Pillows indicated that a negative end of December would be a sign of poor performance in three quarters. The last time such a trend has occurred was in the 2018 bear market. Importantly, Ethereum is currently trading higher than the August rally of over $4,000. That action stimulated anticipations of the long-term upside and increased levels at the year-end.
Momentum was however lost since the asset could not hold the $3,000 zone. Price swings have ruled market structure since mid-December. Ethereium was trading at $2929.60 upon reporting following a 1.13% fall in a single day. The intraday was as low as $2,894.95 and high as $2,983.69.
In the meantime, the level of trading was decreased as exposure was minimized by the market participants. The volume dropped 27.6% to $12.19 billion in 24 hours. December has also had a positive track record in providing an overall above-5 percent returns in 10 years. Its best year was 2017 where there was an almost 70% growth.
So far, Ethereum has not been able to follow the same historical pattern in this month. The asset only surpassed its monthly averages in May, July, and August, posting gains of 41.1%, 48.7%, and 18.7%, respectively. Price action was inconsistent during the rest of the time.
Also Read: Ghana’s Crypto Market Gets Legal Backing After Years in the Gray Zone
Large Transfers and Strategic Exits Shape Market Mood
In addition to charts, on-chain flows have put a strain on the Ethereum outlook. Nine years later a wallet attached to Erik Voorhees came into effect. The wallet therefore sold a total of 13.42 million ETH in the market. This kind of dormant activity in wallets tends to increase short term uncertainty.
Also, the JAN3 CEO, Samson Mow, announced selling all Bitmine Ethereum assets. He said that the company has only turned into concentrated on Bitcoin. In addition, these judgments affected mood in a weak state at the time. Prominent exits tend to influence the action of the traders around major market losts.
Although the weakness remains, there is still some data that indicates that the potential of the upside is limited. CryptoRank has a potential growth of 5.79%.
Nevertheless, Ethereum does not have more than 96 hours to change its monthly path. Short-term price action has become a source of concern due to the narrow window. With the end of the year coming close, traders are torn between pessimists and bulls. The wider perspective is still considered to be of benefit past this month by many.
Nevertheless, the current problem of Ethereum is obvious. The upcoming meetings can either declare the month of December a historic defeat.
Also Read: Brett Harrison Raises $35M as Institutions Return to Crypto Derivatives.
