4 Warning Signs Suggest Ethereum (ETH) Price May Not Recover Soon in Late December

Ethereum (ETH) has been trading sideways near $3,000, and several on-chain metrics suggest a quick recovery is unlikely in late December. The first warning sign is the rise in ETH exchange reserves, increasing by about 400,000 ETH during Christmas week, indicating potential selling pressure despite some institutional buying from firms like BitMine and Trend Research. Secondly, the Estimated Leverage Ratio remains elevated, close to levels seen during major liquidation events, making ETH vulnerable to cascade liquidations from small price moves. The third concern is the deepening negative Coinbase Premium, signaling that US investors are selling ETH at discounted prices relative to Binance. Finally, ETH ETF flows are heading for a second consecutive month of net outflows, exceeding $560 million this month, which removes upward momentum. These four factors collectively suggest ETH may consolidate or face further downside risk.

(Source：BeInCrypto)