As 2025 draws to a close, a palpable sense of anxiety grips the cryptocurrency sector, with the widely watched Fear & Greed Index reflecting extreme investor apprehension. However, a closer examination of market dynamics reveals a starkly different narrative unfolding beneath the surface. Data indicates that while retail participants remain hesitant, large-scale investors are actively using the current price environment to build significant positions. This divergence raises a critical question: could the world’s second-largest cryptocurrency be poised for a reversal?

Institutional Activity Defies Short-Term Weakness

Beyond direct on-chain metrics, other indicators point to sustained professional interest. Trading volume for futures contracts on major exchanges has surged to record levels. This activity persists despite Ethereum’s price remaining approximately 37% below its 52-week high, suggesting institutions are looking past near-term volatility. Furthermore, the ongoing integration of tokenized real-world assets continues to validate the network’s long-term utility and fundamental growth trajectory.

A Battle for Direction at Key Levels

The market opened the week in a state of equilibrium, with neither buyers nor sellers able to establish clear dominance. Ethereum faced repeated rejection at the psychologically significant $3,050 resistance level and is currently trading near $2,939. Analysts have now identified the $2,900 region as a crucial support zone. A sustained break below this threshold could trigger further selling pressure toward $2,750. Conversely, a successful defense of this level would keep the prospect of a recovery firmly on the table. Notably, trading volume has increased perceptibly over the past 24 hours, signaling that participants are positioning themselves for the year-end period.

Should investors sell immediately? Or is it worth buying Ethereum?

The Whale Accumulation Pattern

On-chain data provides compelling evidence of this divide between investor classes, offering bullish signals that contrast with the cautious market sentiment:

• Major Holder Buying: Information from late December confirms that “whales”—entities holding substantial balances—are aggressively accumulating Ether. This pattern of accumulation by large investors frequently precedes broader market shifts and implies they view prices below $3,000 as an attractive entry point.
• Sector Strength: Specific sectors within the Ethereum ecosystem show resilience. The “Real World Assets” (RWA) category, for instance, has delivered the strongest performance in 2025, underscoring the network’s fundamental value even as other areas like gaming have experienced softer demand.

The final trading sessions of the year will likely center on the defense of the $2,900 support level. If buyers, bolstered by the ongoing accumulation from major investors, can maintain this foothold, a renewed attempt to challenge the $3,200 level in early 2026 emerges as the probable scenario.

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