Ethereum Braces for December Pressure - But History Signals a Major 2026 Reset

Ethereum's December looks grim. Market sentiment is souring, liquidity is tightening, and the usual year-end rally seems like a distant memory. The charts are flashing red, and traders are bracing for impact.

The Historical Cycle Playbook

Past performance doesn't guarantee future results—every investor's favorite disclaimer. Yet, Ethereum's price action has followed a rhythmic, multi-year pattern of explosive growth followed by prolonged consolidation. The data points to a familiar script: a tough period now sets the stage for the next major leg up.

Timing the Next Wave

Analysts are eyeing 2026. That's the projected reset point, where accumulated network upgrades, shifting macroeconomic winds, and—let's be honest—a fresh wave of speculative capital could converge. It's the moment when 'building through the bear market' finally pays off for the faithful, and the 'tourists' start checking flight prices again.

The bottom line? Short-term pain for long-term algorithmic gain. The smart money isn't just holding; it's strategically accumulating, betting that the coming reset will make today's worries look quaint. After all, in crypto, the best time to plant a tree was 20 years ago. The second-best time is right before the next halving cycle that the Wall Street analysts will claim they saw coming all along.

Ethereum Enters Final Leg of a Broader A-B-C Correction

From a technical analysis point of view, the Ethereum network is experiencing a massive pullback following a strong escalation in the previous periods.

ETH had reached a point of around $4,600-$4,800, and the buyers looked tired; therefore, a pullback commenced in a standard correction A-B-C formation. Initially, there was a massive sell-off triggered by the first drop. The current market is experiencing the final stages of the correction.

Analyzing the larger picture, one market analyst stated that when you take a larger time perspective, there is still no definitive eventual low in wave B.

As long as ETH is below the falling line, there is still potential in making another lower low. The applicable downside target is $2,267, which corresponds to an essential Fibonacci level.

Source: X

Fibonacci levels from the most recent rally still influence market perspectives. The level at 0.5, around $2,630, and the 0.618 level at $2,260 is turning out to be a major area where market participants may return to buying Ethereum. Ethereum is currently above the 0.5 level.

Key Support Zone Keeps ETH’s Long-Term Trend Intact

The momentum indicators reveal that Ethereum is in a correction phase but not in disarray. The RSI on a weekly chart crossed below the previous support level and is headed to the 30-40 region, where there have been midterm bottoms in larger rallies in the past, indicating that the sellers’ strength may have peaked.

Despite the weakness, however, the overall structure remains intact so long as ETH remains above the $1,380 to $1,500 level. This maintains a technically valid long-term uptrend.

To take charge of the trend once again, a MOVE back above the $3,200 to $3,400 level is essential, which is currently a major level of resistance after having been a zone of previous support.