Ethereum Sits on the Edge of a Cliff as $3000 Shakes

In Brief

• Ethereum is holding above $3,000 but analysts warn it must maintain the $3,050.
• Recent market turbulence shows Ethereum repeatedly losing and reclaiming key supports.
• Whale trading behavior, including new short positions, raise concern of potential downturn.

Ethereum has made a clear recovery above the psychological and critically important $3,000 but now needs to do more. According to crypto experts, the coin has to hold above $3,050 to maintain an upward momentum as signs show potential breakdown.

Crypto analyst Crypto Tony said Ethereum losing the $3,050 may initiate a significant dip, making it the most significant support at the moment. Tony also said a bearish divergence is forming at the resistance and he would flip bearish once that level breaks.

$ETH / $USD – Update

Lose $3050 and then we dip a lot further. Potentially completed 5 wave up here at resistance, with bearish divergence forming.

I will hedge my open long with a short if we lose this support region here. pic.twitter.com/uAnoPQKMTM

— Crypto Tony (@CryptoTony__) December 3, 2025

Ethereum Faces Critical Decision Point

The crypto market has been quite unpredictable lately as corrections continue to linger. However through it all, Ethereum has demonstrated strength, holding key supports even if it loses momentarily. Just yesterday, the coin lost $2,800, another key support that analysts said it needed in order to push further upwards.

However shortly after, it reclaimed the level and has succeeded in climbing above $3,000 as the market staged a recovery led by Bitcoin. According to Tony, the price of the asset needs to stay above $3,050 to avoid a major correction. At the time of this report, the price is hovering around $3,060, which isn’t far from the critical level as a slight correction can erode the price fast.

If the current rally continues, Ethereum will likely be one of the assets to bounce back fast. On the other hand, should there be a correction, it could enter the huge dip that Tony anticipates if it breaks below the critical level.

Ethereum Whales’ Body Language Raises Concern

While the crypto market has staged a recovery that could potentially persist, the body language of whales casts doubts on the future of the coin. On 29 November, one whale opened a $15 million short on the coin after previously longing it for a huge profit.

It isn’t clear why the whales are shorting, but observers say it is because they know something the rest of the market doesn’t know. If the whale who has been largely accurate on all his crypto bets, is right, Ethereum may be getting set for a significant drop in the near future.