Ethereum’s price has pulled back after a steady recovery that began in mid-December. Despite falling over 4% in the past 24 hours, ETH is still up roughly 5% on the week. Its monthly trend has been mostly flat. This sideways movement reflects a market stuck between buyers and sellers.
The latest rejection near a key resistance level highlights this imbalance. Buyers keep stepping in, but they are not pushing hard enough to force a breakout. As a result, Ethereum is now at a critical decision point. One level could decide whether the pullback stays shallow or deepens further.
On-chain data helps explain why momentum faded. The group driving the recent volatility has been short-term holders. Wallets holding ETH for one day to one week reduced their share of supply as the price tested resistance. That selling lined up closely with the rejection near the upper trendline.
A major support zone sits near $3,140. This area represents the average cost basis for about 3.1 million ETH. If this level breaks, the next significant demand cluster is much lower, around $2,800. This gap explains why short-term selling near resistance is risky. If support gives way, the price can slide quickly before finding a stronger footing.
While short-term holders added volatility, longer-term participants have quietly supported the market. Since the dip began, larger holders, often called whales, have started absorbing supply. This activity helps prevent a sharper breakdown. Since January 7, these large Ethereum holders have added roughly 200,000 ETH to their balances. This buying provides a counterbalance to the selling pressure from short-term traders.
The market is now watching the $3,140 level closely. It is a battleground between short-term sellers taking profits and longer-term whales accumulating. A break below could see a swift move toward $2,800. However, the recent whale buying suggests significant interest in defending this zone, which may limit further downside.
