Buying ETHUSD ahead of potential post-holiday correction

The ETHUSD pair is currently trading near $2,940—below the psychologically important level of $3,000—amid overall altcoin weakness. Huge capital outflows from crypto exchange-traded funds (ETFs) have hung over the market like a big dark cloud in recent days. Both institutional and retail investors are recording losses as the year-close approaches, fleeing risky assets like Ethereum and reducing their liquidity.

However, the list of problems does not end there. ETH is on shaky ground. Despite a record number of transactions and a recent successful update, major market players, such as Arthur Hayes, are taking profits by reallocating funds to stablecoins and specific DeFi tokens. Sales by ETHZilla and similar companies increase supply to cover liabilities, while institutional accumulation by BitMine has not yet been able to reverse the trend due to low overall demand.

On the other hand, political factors may help Ethereum stay afloat. Donald Trump’s family and related businesses have invested a big chunk of money in cryptocurrencies, making them particularly interested in market stability. If a severe crisis hits, the US government could step in to minimize systemic risks. This would prevent a deeper decline in ETH.

In the meantime, today’s technical picture on the daily chart signals a short-term bearish trend; however, a correction is likely. For now, the price is consolidating within a narrow channel amid lower volatility. The Relative Strength Index (RSI) dropped to 26 points, approaching oversold territory. The Chaikin Oscillator keeps signaling capital outflows but at a slower pace. The indicator has recently risen from the lows of the second half of December, suggesting that bearish momentum is waning. Following a typical stagnation during Christmas holidays, the market will probably see a surge in volatility. Coupled with a technical correction, this environment may push Ethereum prices higher.

Take a close look at the trading strategy down below:

Buy ETH at the current price. Place Take profit at $3,300 and Stop loss at $2,700.

The forecast is valid from December 25, 2025, till January 1, 2026.