Ethereum’s market momentum has notably decelerated this December, with its price currently trading well below the psychologically significant $3,000 threshold. While the network’s technical foundation remains robust following a recent upgrade, activity from large-scale investors is introducing a note of uncertainty into the market. Significant transfers by institutional players, including asset manager BlackRock, toward major exchanges suggest these entities may be reducing exposure rather than accumulating new positions.
Technical Stability Amid Market Weakness
Contrasting the price action, Ethereum’s underlying technology continues to advance. The “Fusaka” upgrade, activated on December 3rd, has now operated stably for nearly three weeks. This implementation introduced Peer Data Availability Sampling (PeerDAS), enhancing scalability for Layer-2 solutions by allowing nodes to verify data more efficiently. Furthermore, new network parameters have increased data capacity for rollups, a change expected to lower transaction costs on networks like Arbitrum and Optimism over the long term. Developer focus is already shifting to the next planned upgrade, “Glamsterdam,” slated for 2026.
Whale Movements Point to Potential Selling
On-chain data reveals substantial transfers that are driving current market apprehension. Analytics from Onchain Lens indicate that large wallet addresses are moving holdings onto exchanges—a maneuver often preceding sell orders. A transaction involving asset manager BlackRock has drawn particular attention, with the firm moving 36,579 ETH, valued at over $100 million, to Coinbase.
This defensive posture is not limited to institutional actors. Early investors from Ethereum’s initial coin offering (ICO) era, commonly referred to as “whales,” have also been active. One transferred more than 4,100 ETH to Kraken, while another deposited approximately 17,800 ETH at Binance. Market observers interpret these substantial exchange inflows as preparations for potential sales or as a hedge against short-term volatility, actions that are currently applying a ceiling to Ethereum’s price.
Should investors sell immediately? Or is it worth buying Ethereum?
Spot and Derivatives Markets Tell Diverging Tales
Current market metrics paint a picture of investor hesitation. Trading volume on the spot market has plunged by more than 50%, signaling a distinct lack of conviction among buyers. Conversely, open interest in the derivatives market has seen a slight increase. Traders are amplifying their leverage in this arena, which typically hints at an anticipation of more pronounced price movement in the near future.
As of the latest data, Ethereum is trading around $2,826, marking a decline of roughly 12% from its level just one week ago. From a chart perspective, the situation is becoming more acute. The failure to hold above $3,000 has deteriorated the technical outlook. If this level is not recaptured promptly, focus will shift to the support zone near $2,790. A decisive break below this level could trigger a sharper corrective phase.
Conclusion
Ethereum finds itself at a critical juncture, caught between demonstrable technical progress and macroeconomic headwinds stemming from central bank interest rate policies. The combination of absent buying pressure in the spot market and substantial transfers by major holders warrants a cautious approach. The defense of the $2,790 support level will be pivotal for Ethereum’s trajectory into early 2026, determining whether the selling pressure from large investors will prevail.
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