The combination of rising network participation and steady price consolidation has prompted analysts to reassess Ethereum’s near-term outlook. While broader market conditions remain cautious, the divergence between growing on-chain usage and muted price action suggests the market is balancing structural adoption signals against short-term liquidity constraints rather than pricing in a decisive trend.
Ethereum Network Activity Signals Growing Engagement
Recent on-chain data shows a sharp increase in Ethereum network usage. According to analyst Ali Martinez (@alicharts), daily active Ethereum addresses rose from approximately 496,000 on December 8 to over 800,000 by December 25, 2025. The surge, illustrated through Santiment data, represents nearly a doubling of user activity in under three weeks.
Ethereum ($ETH) network activity surged over the past week, with active addresses increasing from 496,000 to 800,000. Source: Ali Martinez via X
Supporting figures from YCharts show a similar trend. Active addresses climbed from 521,000 on December 21 to more than 701,000 the following day, reinforcing the view that the rise reflects broader ecosystem participation rather than isolated speculative bursts. Historically, such growth has coincided with increased interaction across decentralized finance platforms, NFT marketplaces, and smart contract execution.
However, prior market cycles show that address expansion alone does not guarantee sustained upside. Similar spikes in mid-2024 failed to translate into prolonged price appreciation when macro liquidity tightened, highlighting that on-chain engagement is most effective as a supporting signal when confirmed by rising volume and capital inflows.
Ethereum Price Today Holds Key $2,900 Support Level
At the time of reporting, Ethereum’s price today hovered around $2,945, reflecting modest daily losses amid subdued trading volume. Despite the lack of momentum, ETH has repeatedly defended the $2,900–$2,920 support range, suggesting buyers remain active at these levels.
Ethereum ($ETH) is consolidating near $2,900, with potential breakout targets of $3,500 upside or $2,500 downside amid low holiday volume. Source: Crypto Laurisa via X
Technical analysis shared by Crypto Laurisa (@CryptoLaurisa) places Ethereum within a consolidation range, with resistance clustered between $3,030 and $3,060. While higher lows continue to form from support, this structure remains neutral until ETH reclaims $3,000 on a sustained basis.
Laurisa described the setup as a “decision point,” noting that comparable consolidations earlier in 2025 preceded 15%–20% moves once volatility returned. Still, such outcomes were not uniform across periods, underscoring that confirmation—rather than anticipation—remains critical for directional conviction.
Low Liquidity Weighs on Ethereum Technical Analysis
Market participants continue to navigate reduced liquidity conditions typical of the year-end period. Analysts caution that Ethereum technical analysis becomes less reliable during holiday sessions, when thinner order books can exaggerate price swings without reflecting broader market intent.
Ethereum faces low liquidity and high year-end volatility, with support near the move’s origin and cautious upward targets; risk management is advised. Source: behdark on TradingView
A TradingView-based assessment observed that Ethereum’s prior wave structure has widened due to limited capital inflows. “Ethereum is still owed an upward move, but it is likely to make this move with difficulty,” the analyst noted, emphasizing the importance of conservative position sizing and disciplined risk management.
In similar low-liquidity environments, price has often remained range-bound longer than expected, with breakouts failing when volume does not return promptly. As a result, current price behavior may reflect timing risk rather than a breakdown in broader market structure.
Ethereum ETFs Face Outflows, But Confidence Builds Among Long-Term Holders
Institutional flows present a mixed picture. Data cited by BeInCrypto shows that Ethereum ETFs have recorded nearly two consecutive weeks of net outflows, with only one inflow session driven largely by Grayscale activity. These withdrawals have contributed to persistent resistance near the $3,000 level.
Ether ETFs saw $95.5M in outflows, led by Grayscale’s ETHE, reflecting routine year-end rebalancing rather than a shift in market sentiment. Source: Ismeidy via X
That said, ETF outflows during periods of thin liquidity have historically amplified short-term volatility without always signaling a structural shift in institutional positioning. In contrast, on-chain holder behavior offers a more stable lens.
Ethereum’s HODLer Net Position Change recently reached its highest outflow level in five months, indicating that long-term holders are reducing sell-side pressure. If the metric moves back above neutral, it would suggest renewed accumulation—a condition that has previously aligned with price stabilization phases rather than immediate rallies.
Ethereum Price Outlook Hinges on Key Levels
From a price analysis perspective, Ethereum remains capped below a major psychological threshold. A confirmed reclaim of $3,000 could improve upside probabilities toward $3,130, while continued rejection would reinforce the current consolidation regime.
Analysts identify $2,798 as a critical downside level. A controlled retest followed by strong buying interest could reinforce support, whereas a decisive break below that zone would weaken the structure and expose ETH to a deeper move toward $2,680. This level, therefore, acts as a clear invalidation point for the near-term bullish thesis.
Ethereum Price Prediction Remains Data-Dependent
The current Ethereum price prediction landscape reflects a market in imbalance rather than transition. Rising network activity and easing long-term holder selling contrast with ETF outflows and constrained liquidity.
Ethereum was trading at around 2,956.45, up 0.48% in the last 24 hours at press time. Source: Ethereum price via Brave New Coin
In the short term, price behavior between $2,900 and $3,000 is likely to remain the dominant signal for traders. For longer-term investors, sustained growth in active addresses and holder accumulation trends carries greater relevance as indicators of network health.
Until volume expands and Ethereum exits its consolidation range decisively, ETH’s outlook remains conditional—shaped less by isolated indicators and more by how these signals align once broader market participation returns.