Ethereum Momentum Analysis: Short-Term Trends (1 Viewer)

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Ethereum Momentum Analysis: Short-Term Trends

Ethereum is demonstrating building short-term momentum as of December 8, 2025, trading around $3,105 USD after a 2.3% gain in the last 24 hours and a robust 10.5% increase over the past week. This rebound follows a brief dip below $3,000 earlier in the month, driven by post-Fusaka upgrade consolidation and renewed institutional inflows. The Fusaka upgrade (activated December 3) has enhanced scalability with 8x data capacity via PeerDAS, reducing L2 fees by up to 95% and boosting TPS potential to over 12,000—early signs of improved network efficiency are evident in rising on-chain activity.

  • Short-Term Trends: ETH is forming an ascending channel on the 4-hour chart, holding above the rising 50-day SMA (~$3,050 support), though it remains below the 200-day SMA (~$3,500), indicating a neutral-to-bullish intermediate trend. RSI (14-period) at 55 (neutral, up from oversold 35 last week) and MACD showing a bullish crossover with expanding green histograms suggest gathering upside momentum. Key support at $2,950–$3,000 (recent reclaim and 0.618 Fibonacci from November lows); resistance at $3,140–$3,180 (upper Bollinger Band and prior highs). A break above $3,180 could target $3,320–$3,450, aligning with 11.98% monthly upside forecasts.
  • Momentum Drivers: ETF inflows surged to $136.7M net in the last 24 hours (top among chains), with BlackRock filing for a yield-bearing ETH ETF (ETHB) and BitMine adding $429M in ETH (total holdings $12B). On-chain metrics reinforce this: staking at 29–31% of supply (35–37M ETH locked, TVL ~$114B+ across protocols); exchange reserves at 8.5% of supply (down from 9.2% last month, signaling HODLing); whale accumulation of $2.8B ETH in recent weeks. DeFi TVL on Ethereum hit $71B (+1.58% 24h), with liquid staking derivatives (LSDs) at ~$45B (31% market share, led by Lido's 9.41M ETH). Stablecoin mcap at $167B and DEX volume at $1.3B/24h indicate sustained liquidity.

Community sentiment is 78–82% bullish, with X discussions highlighting ETF momentum and Fusaka's role in L2 adoption (e.g., Arbitrum's 237K DAUs). However, broader market risks like Fed policy (Dec 10 meeting) and potential 15% pullback to $2,600 could cap gains if $2,950 support fails. Year-end targets range $3,900–$4,500 on continued inflows and upgrade tailwinds.

Trade idea: Long ETH above $3,120 (stop $3,000), targeting $3,350 (1:3 R:R) on ETF-driven breakout.
 
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