Ethereum May Test Critical Support After Breakout of $3,100 As Stock Hits Record High

TLDR

Ethereum broke the $3,100 resistance but may now retest the $3,020-$3,050 support zone for confirmation.
Despite continued heavy selling pressure in December, Ethereum was recorded entering stock addresses.
Growing proof staking activity removes ETH supply from circulation, creating tighter volatility.
Next, the resistance zones at $3,160-$3,240 and $3,320-$3,400 determine the strength of the bullish momentum.

Ethereum broke above the $3,100 resistance level yesterday before entering a small recovery phase. The reversal represents a normal market reaction when traders lock in profits following a reversal.

Market analysts are now focusing on the $3,020 to $3,050 support zone as a critical test. Meanwhile, data on the chain shows record inventory and growing stock movements despite continued sales pressure. While price action remains range-bound, these dynamics suggest that supply is tightening.

Price action points to critical support test

Crypto analyst Ted Pillows on social networks said that Ethereum could retest the $3,020 to $3,050 zone in the near future.

This area now serves as a key support level after the recent breakout. A successful hold in this range triggers the next upward move.

The immediate resistance is placed between $3,160 and $3,240, some selling pressure may be created. Beyond that level, there is a strong resistance zone between $3,320 and $3,400.

These limits determine whether the current rate of bullishness can sustain itself in the short term.

However, failure to sustain support above $3,020 will shift focus to lower levels. The next important support zone is between $2,780 and $2,820.

Below that, the $2,550 to $2,600 range has historically attracted strong buying interest during previous corrections.

Storage and activity signal supply reinforcement

Data from FXStreet shows that Ethereum has a tendency to enter stock addresses in December.

CryptosRus highlighted this development by stating that higher selling pressure did not prevent this accumulation trend. The pattern suggests that long-term owners are building positions despite short-term price volatility.

Stacking activity continues to remove supply from active distribution. More tokens are entering verifiable staking arrangements that lock them in for longer periods of time.

This behavior differs from speculative trading patterns and represents the capital of network participation for profit generation.

The combination of storage and stock creates a supply compression dynamic. It reduces the available supply of tokens going into wallets that are held historically rather than traded.

At the same time, lock switches completely remove signals from transmission. While prices are relatively flat, these structural changes are occurring underground. A pattern precedes supply-driven price movements, although the timing is uncertain.

Market participants continue to monitor both technical levels and on-chain metrics to confirm the next directional move.