Ethereum News Today: Ethereum Faces a Pivotal Moment at $2,880—Will Institutions Keep Buying or Will Bears Take Over?

Ethereum Faces a Crucial Price Crossroads Near $3,000

Ethereum is at a pivotal moment as its price hovers close to the $3,000 mark. Recent technical signals and blockchain data present a mixed outlook for its short-term direction. Although the cryptocurrency has rebounded by 10% from a monthly low of $2,400, overall market sentiment remains cautious.

One key indicator, the Relative Strength Index (RSI), has revealed a hidden bearish divergence between November 18 and 28. During this period, Ethereum’s price formed a higher low, but momentum waned, suggesting that sellers still have the upper hand despite the recent bounce. Adding to the uncertainty, long-term investors have sold off more than 973,600 ETH in just one week—a 191% surge in selling activity since November 22—indicating increased downward pressure.

Institutional Investors Show Confidence

Despite the prevailing bearish mood, institutional players are providing some optimism. BitMine, a significant Ethereum holder, recently acquired 69,822 ETH (valued at $200 million), bringing its total holdings to 3.63 million ETH—almost 3% of the entire supply. This accumulation, along with $96.67 million in net inflows into US spot Ethereum ETFs (including $92.6 million into BlackRock’s fund), underscores growing institutional faith in Ethereum’s future.

Additionally, expectations that the Federal Reserve will cut interest rates at its December meeting—now estimated at over 80%—have encouraged speculative buying. Lower rates could make crypto assets more attractive by reducing capital outflows from the market.

Key Technical Levels to Watch

Technical analysis identifies a major resistance area around $2,880. If Ethereum can break above this threshold, it could pave the way for a move toward $3,200, fueled by renewed investor confidence and continued institutional buying. On the other hand, if the price fails to reclaim $2,880, it may slip back to the $2,580 support zone, where previous buying interest has emerged. The price is also forming a narrowing pennant pattern, with $3,016 acting as an important support level that aligns with the 0.382 Fibonacci retracement.

On-Chain Metrics Reflect Uncertainty

Market indecision is evident in on-chain data. The MACD indicator on the four-hour chart has turned bullish, but the RSI remains close to the neutral 50 mark, highlighting a balance between buyers and sellers. Whale activity adds further complexity: wallets holding between 10,000 and 100,000 ETH have increased their balances, while smaller whales (1,000–10,000 ETH) and micro-whales (100–1,000 ETH) have distributed a combined 220,000 ETH over the past week.

Looking Ahead: Macroeconomic Factors and Institutional Moves

Ethereum’s future trajectory will likely depend on broader economic developments and the pace of institutional adoption. The introduction of Grayscale’s DOGE ETF and ongoing initiatives to tokenize real-world assets are accelerating crypto’s integration into mainstream finance. However, Ethereum’s ability to maintain a price above $2,880 will be a key factor in determining whether the current rally continues or gives way to a deeper correction.