Investing in ETHUSD on confirmed bounce from key support

Ethereum (ETHUSD) is caught in a slow downtrend, with consolidation signs laying on the table after its recent slide. The price is now lingering near local lows, mirroring the broader pullback that comes with seasonal standstill. The main anchors dragging it down are shrinking liquidity and steady outflows from crypto exchange-traded funds (ETFs).

This weakness is written all over the token's position against Bollinger Bands. On Thursday morning, ETH is hugging the lower edge ($2,794), barely keeping its head above it. That puts the asset in a zone of relative softness—not yet in the fire-sale territory, but far from being strong.

Oscillators also wave that buying momentum has run out of steam. The Stochastic Indicator (5,3,3), with %K=22 and %D=26, is flirting with oversold levels. Since the fast %K line is still pointing downward, the odds favor more downside before any real rebound kicks in. Meanwhile, the Chaikin Oscillator's negative reading seals the deal, confirming sellers are holding the reins, and funds are walking out the door.

Underneath it all, Ethereum's struggles stem from waning interest in cryptos. The evidence is hard to ignore: four consecutive days of outflows from ETH ETFs, totaling $510 million. Furthermore, there is a waiting game around President Donald Trump's upcoming speech, which could sway the regulatory winds, thus adding another layer of uncertainty to the mix.

Looking ahead, one bright spot on the horizon is Ethereum's planned gas limit increase to 80 million in January 2026. This upgrade may give the network a boost and lift ETH's appeal over time. For now, though, thin holiday trading and a wait-and-see stance by central banks are likely to keep any rallies on a short leash.

The following trading strategy is recommended: 

Enter a buy position on ETHUSD only if there is a confirmed rebound from the $2,750–$2,800 support. Set Take Profit targets at the first and second resistance levels, which are $3,000 and $3,150, respectively. Place Stop Loss at $2,625.

This forecast is valid from December 18 till December 25, 2025.