Ethereum finds itself at a critical juncture. The world’s leading smart-contract blockchain failed to sustain the psychologically crucial $3,000 level on December 16, 2025, sliding 2.8% to around $2,918. This breakdown isn’t just a number on a chart; it signals a sharp erosion in short-term momentum, leaving the asset’s recovery in serious doubt as a confluence of technical, on-chain, and macroeconomic pressures bear down.
A Precarious Technical Picture
The charts paint an unambiguous bearish story. Ethereum is not merely trading below $3,000; it is trapped beneath a formidable ladder of resistance. Key moving averages, including the 100-hour Simple Moving Average (SMA), now loom overhead, with the 10-day and 20-day Exponential Moving Averages (EMAs) creating additional barriers near $3,070 and $3,087. Analysts note a connecting bearish trend line on hourly charts capping any rebound attempts near $3,175. For any hope of a trend reversal, a clean and decisive break above the $3,200 resistance zone is essential. The downside, however, is perilously clear. Initial support sits at $3,050, with a break below this “trapdoor” likely triggering a swift retest of $3,000 and potentially opening a path down to $2,940. A daily close below the critical $2,910 support could invalidate any rebound setup entirely, exposing targets as low as $2,710.
The Institutional Päradox: JPMorgan’s Vote of Confidence
In a stark contrast to the weak price action, a landmark development emerged from traditional finance, highlighting Ethereum’s fundamental value proposition. Global banking giant JPMorgan announced the launch of its first tokenized money market fund, called MONY, directly on the Ethereum blockchain, seeding it with an initial $100 million. This move powerfully reinforces Ethereum’s established role as the premier settlement layer for institutional-grade tokenization of real-world assets (RWAs). It represents a profound long-term vote of confidence, suggesting that major financial institutions are building on Ethereum’s infrastructure for the future, even as its native token stumbles in the present. This creates a fascinating paradox where bullish fundamentals collide with bearish technicals.
Underlying Weakness and Market-Wide Stress
Beneath the surface, on-chain and market data reveal why the price is struggling. The network has seen a significant drop in activity, with monthly fees plunging and active addresses declining. Furthermore, the broader crypto market is in a risk-off mode. A major liquidation event, sparked by a mining crackdown in China, saw over $658 million in positions wiped out across the market. Ethereum bore a substantial brunt of this, with over $207 million in long positions liquidated as prices fell. This high-leverage unwind created intense selling pressure, demonstrating how interconnected and fragile market sentiment has become. The Crypto Fear and Greed Index has slipped into “Extreme Fear”, confirming the pervasive caution among investors.
Ethereum now stands at a crossroads, caught between the undeniable gravity of its technical breakdown and the powerful, forward-looking signal of institutional adoption from giants like JPMorgan. The path forward hinges on whether it can defend key support levels near $2,910. A successful hold and reclaim of $3,200 could mark this episode as a painful but temporary correction. However, failure to stem the technical tide may lead to a deeper, more painful retracement before the next sustainable rally can begin. For now, the market’s message is clear: the institutional future is being built on Ethereum, but the present is fraught with technical peril.
