Ethereum is demonstrating notable relative strength after reclaiming the $3,150 level and attempting to push higher, offering a refreshing shift in sentiment following weeks of intense selling pressure, fear, and market-wide uncertainty. As the broader crypto landscape begins to stabilize, ETH stands out as one of the assets showing early signs of recovery, drawing renewed attention from traders and long-term investors alike.

A key factor supporting this shift is the Net Unrealized Profit/Loss (NUPL) reading for Ethereum on Binance, which is currently sitting around 0.22 while price trades near $3,100.

This level reflects a delicate equilibrium between fear and optimism, indicating that a significant portion of ETH holders remain in moderate profit. Importantly, NUPL has not yet moved into the “greed” zone typically seen in the late stages of a bullish cycle, suggesting that the market is far from overheated.

Instead, Ethereum appears to be transitioning into a more neutral, constructive phase where investors are cautiously optimistic but not excessively euphoric. This balance often forms the foundation for a healthier recovery, especially after a deep correction. If momentum continues building and NUPL remains stable or trends higher, ETH could be positioning itself for a stronger upside move in the coming weeks.

NUPL Signals a Transitional Market Phase

Arab Chain notes that Ethereum’s NUPL index experienced a significant rise between June and August, reaching levels far higher than today and reflecting strong profitability across the network during mid-2025. At that time, investor sentiment leaned toward optimism, supported by rising prices and improving macro conditions.

However, as Ethereum’s price began to decline steadily from October onward, unrealized profits started to shrink. This pushed NUPL down toward more neutral territory, signaling a shift in sentiment from elevated optimism to a more grounded, cautious outlook.

Crucially, NUPL has not fallen into negative territory, meaning the average ETH holder has not transitioned into unrealized losses. This is an important sign of underlying market strength. When investors remain in profit, they tend to be less motivated to sell aggressively at lower prices, reducing the risk of panic-driven capitulation and helping stabilize price action during corrections.

Taken together, these signals indicate that Ethereum is currently in a transitional phase. The market is neither euphoric nor fearful—rather, it is waiting for a decisive catalyst to define the next trend. As long as NUPL stays above 0.20, Ethereum retains a meaningful level of investor confidence, increasing the likelihood of a rebound if liquidity strengthens or positive fundamental developments emerge.

ETH Rebounds Strongly on the Weekly Chart

Ethereum’s weekly chart shows a powerful rebound as price surges back above the $3,150–$3,200 region, reclaiming a critical support band that had turned into resistance during the November sell-off. The long lower wick from last week’s candle confirms strong buy-side interest around the $2,700–$2,800 zone, an area that has historically acted as a major demand region during multi-month corrections.

ETH has now reclaimed the 100-week SMA, a key trend indicator currently positioned near $2,900, signaling renewed structural stability. The 200-week SMA, sitting comfortably lower, continues to reinforce the long-term uptrend. However, the 50-week SMA, which has flattened and now looms around the $3,350–$3,400 level, represents the next significant resistance level. ETH will need a decisive weekly close above this moving average to confirm a true shift back into bullish momentum.

Volume on the rebound is notably stronger than in previous consolidation phases, suggesting increased participation and growing confidence among market participants. However, ETH is not yet in the clear. The series of lower highs since the September peak forms a descending structure that must be broken for a sustained uptrend to resume.

Featured image from ChatGPT, chart from TradingView.com

Ethereum (ETH) has joined Bitcoin (BTC) in a notable price recovery, managing to reclaim the $3,000 mark. This resurgence could signify a pivotal moment for the altcoin, suggesting a potential new upward trend. However, investors remain divided on whether ETH may face further declines or if a year-end rebound could reignite bullish sentiment.

ETH’s December Struggles

In order to anticipate Ethereum’s probable moves in December, Alex Carchidi, an analyst at The Motley Fool, notes that this month has traditionally been a difficult month for the cryptocurrency. Since 2016, Ethereum has only concluded December higher than it started in four of the nine years studied. 

In the remaining five cases, the month ended in negative territory. The average December return throughout this span is about 7%, indicating that a strong “Santa rally” is improbable. The median performance shows a 6% drop. 

Examining the relationship between November and December reveals a more intriguing pattern. Between 2016 and 2024, when November has been weak for ETH, December often followed suit, with three out of four instances showing declines. 

The only outlier was in 2018, when Ethereum rebounded in December after a particularly harsh downturn in November. This historical context suggests that a poor performance in November could carry over into December, making a cheerful month less probable.

But while December’s performance has historically been mixed, the beginning of the year has typically shown strong potential for the Ethereum price, particularly in the first and second quarters. 

In fact, average returns tend to peak in the first quarter at around 77% and the second quarter at approximately 64%, indicating that there may still be significant growth on the horizon for the leading altcoin.

Tom Lee Foresees Ethereum Surging To $7,000 

Amidst this hypothetical scenario, Tom Lee, chairman of BitMine Immersion Technologies and a major industry advocate, predicts a bright future for Ethereum in the near and long term. 

The executive believes that the cryptocurrency could surge to $7,000 per coin heading into the first quarter of 2026, reflecting a nearly 150% price surge from its current value. 

Lee is even more optimistic about the long term, predicting that if his vision for a decentralized financial system materializes, the Ethereum price could soar by 2,090% to reach $62,000 by 2035.

After a challenging year in which ETH significantly underperformed its peers, it has shown increased resilience, especially following the recent crash in crypto prices that saw the token’s valuation drop to $2,600 last Friday. 

Currently, ETH is trading just above $3,000. While this is not bullish enough to outpace the recent crash, ETH is positioned to recover significantly if demand and capital flow back into exchange-traded funds (ETFs) as the year comes to a close. 

Featured image from DALL-E, chart from TradingView.com