Back in August, I sold my entire ETH stack. I told a few close friends to do the same. They all looked at me like I had lost my mind. Everyone kept saying the same thing. “But Q4 will pump.” “It’s the final leg of the cycle.” “Just hold for the moon.” However, trading is never that easy. When the whole world agrees on one outcome, the market usually chooses the opposite. That is how the game works. Market makers don’t care about your dreams. They care about liquidity. And your stops are their liquidity.
Looking back, my exit aged well. My friends still remind me every week that they didn’t follow me, and now they pray ETH magically flies in December so they can laugh at me again. So today, let’s look at the Ethereum price and see if the leverage reset finally cleared the path for a bigger move.
Ethereum Leverage Reset Clears the Excess
Ethereum trades around three thousand dollars after a decent bounce this month. The market spent almost two months correcting, wiping out weak hands across the board. ETH fell from the high four thousands to below three thousand. It was a harsh move, but a necessary one. Too many traders were using leverage like it was free money.
During the drop, futures open interest across exchanges slid from twenty-one billion to seventeen billion. This shows a massive flush of overleveraged longs. Funding rates drifted lower as bullish pressure faded. By late November, most aggressive positions were wiped out and replaced by smaller, more careful trades. This is exactly what a leverage reset looks like.
On-chain data supports this view. MVRV ratios sit near fair-value territory. The price also bounced right when whale wallets reached their realized price level, suggesting big players were re-accumulating. That lines up with recent buying from large treasuries and institutional desks. One treasury even lifted its ETH stack to over three million coins. Another major asset manager quietly bought tens of millions worth of ETH. The demand is real, even during red weeks.
However, spot ETF flows tell the other side of the story. November saw more than one billion dollars in outflows, showing persistent selling pressure from certain institutional groups. The market is still balancing these opposing forces.
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Short-Term ETH Outlook
ETH trades slightly below three thousand as the market stabilizes. Despite the rebound, the altcoin remains down heavily on the monthly chart. Many short-term traders are underwater, which explains the choppy price action.
Analysts describe the current stage as a bottom-building zone. Leverage reset? Yes. Whales buying? Yes. Trend reversal? Still forming. Traders should expect a messy market with rallies being sold into. That’s typical behavior before a stronger shift begins.
Macro conditions may help. Rate-cut expectations for December have reached high probability. Lower rates usually support risk assets, including crypto.
Technical Picture: Megaphone Pattern and New Targets
ETH recently bounced from the 2,650–2,750 zone. That area has been a historical turning point in previous cycles. Buyers stepped in again, creating a foundation for potential upside.
Charts show a broadening megaphone structure. This pattern suggests rising volatility and the possibility of higher highs if momentum continues. There’s also a contracting triangle forming on lower timeframes. Breakouts from these setups can fuel strong moves.
Near-term targets sit around 3,180–3,250. If buyers gain strength, ETH might attempt a push toward the 3,550–3,650 region. Social sentiment is mixed, and while some traders post bullish takes online, most of that noise is short-term speculation. It should be taken lightly.
Institutional Accumulation Remains Strong
A big narrative supporting ETH is institutional accumulation. Large treasuries and corporate holdings continue to rise. One publicly tracked treasury sits on roughly three percent of all circulating ETH. They’ve hinted at staking a portion of their supply next year. If that happens, it could tighten the market and reduce liquid supply even more.
Analysts note that confidence among big players remains strong. Many of these entities believe in long-term value coming from Layer-2 growth, staking expansion, and network upgrades. These factors often attract strategic buyers during corrections.
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Key Levels to Watch
Support zones: 2,800–2,900
If ETH loses these levels, the correction may extend.
Resistance zones: 3,000 psychological level, then 3,180–3,250
Only a clean break above these areas opens the door toward 3,550–3,650.
Momentum indicators: RSI above 50 and a bounce in stochastic show improving sentiment. Still, no indicator guarantees direction. They simply help create context.
Ethereum Price Outlook Into 2025
The medium-term picture looks promising, but not without risks. Traders should prepare for multiple scenarios:
Bullish case:
A firm hold above 3,000 and sustained strength from the 2,650 support could push ETH toward the 3,550–3,650 band. If liquidity conditions improve, the move could extend even further.
Bearish case:
If ETH loses support again, it may revisit the mid-2,600 area or even dip below it during broader market weakness.
Catalysts to monitor include ETF flow stabilizing, staking developments, macro conditions, and Ethereum’s upgrade roadmap.
Year-End Setup: Can ETH Reach 4,200?
Some traders now track a potential year-end breakout. ETH forms higher lows near 2,770 and sits just under key resistance. Exchange reserves have dropped by more than two percent, meaning fewer tokens are available for selling. That often supports price during recoveries.
The next network upgrade, scheduled for early December, adds extra momentum. Past upgrades have triggered significant rallies. If ETH reclaims 3,058 and later breaks 3,618, the road toward 4,200 becomes possible.
Whale selling still exists, but most of these large wallets maintain heavy long-term positions. That signals ongoing belief in Ethereum’s value despite short-term volatility.
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Final Words
The Ethereum leverage reset cleaned out the excess. Whales accumulated. Retail got cautious. And the chart finally looks healthier than it did in early autumn. But this market is still tricky. It will reward patience more than aggression. As we head toward the last weeks of the year, all eyes are on whether ETH can reclaim its key levels and give my salty friends something to laugh about.
Will my August exit still look genius by New Year’s Eve?
Or will they send me ETH memes for the next three months?
We’ll find out soon enough.
If you enjoyed this blog, check out our recent blog on the $HYPE price.
As always, don’t forget to claim your bonus below on Blofin. See you next time!
