Key Highlights:
- ETH price up by almost 4% today, December 19, 2025.
- ETH exchange supply at the lowest since 2016, indicating a tight supply.
- Overall market remains cautious despite some accumulation trends.
Ethereum (ETH) gained almost 4% today, December 19, 2025, and this gain beats the wider crypto market’s 1.48% increase in the last 24-hours. The bounce due to which ETH has risen up to $2950 mark, comes from easing U.S. inflation signs, buying investors, and a technical recovery from oversold zones.
However, there has also been a significant ETF outflow yesterday, which was around $96.62 million and in the past week it was around there was an outflow of $568.08M which shows caution as market mood stays weak. Moreover, the market’s fear and Greed index is also at 16, which indicates extreme fear.
Macro Relief Fuels Risk-On Rally
Positive economic news has helped push the ETH price higher, and this increase is moving in line with gains seen in stock markets. Japan’s central bank raised interest rates for the first time since 2006, which weakened the yen and encouraged the investors to borrow cheaply and invest in riskier assets worldwide.
At the same time, US inflation data came in to be lower than what was being expected. This reduced fears about rising prices and increasing expectations that the Federal Reserve may cut interest rates in 2026.
These factors have strongly supported the crypto market. ETH’s price movement became closely linked to the S&P 500, with a 24-hour correlation of 0.78, the highest since October, showing it is behaving like a high-risk asset.
Falling US bond yields, driven by rate-cut hopes, pushed more money into volatile investments such as ETH. This shift of investors to risk-on assets lifted the entire market, with Bitcoin rising too, though not as sharply as ETH.
At press time, the price of ETH token stands at $2,949.72 with an increase of 3.57% in the last 24 hours as per CoinMarketCap.
Meanwhile, investors are now focused on the upcoming US PCE inflation data which is said to be due on December 20, 2025. If the inflation rate comes in higher than what is being expected, then there is a high possibility that the market mood could turn negative.
Whale Accumulation Signals Confidence
BitMine recently purchased $229 million worth of ETH this week, according to Arkham, which again shows a growing interest from institutions, a pattern that is usually seen during earlier bull markets.
TOM LEE IS STILL BUYING: $229M THIS WEEK
Two fresh wallets just withdrew $88.73M of $ETH from FalconX. This acquisition matches prior Bitmine purchase patterns.
It appears that Bitmine has bought at least $229.31M of $ETH so far this week. pic.twitter.com/NQoqtzGY3I
— Arkham (@arkham) December 18, 2025
ETH balances on exchanges have also dropped down to their lowest levels in years as per CryptoQuant. This suggests that large holders are moving coins into long-term storage. The trend is often associated with institutional accumulation and reduced sell-side pressure, though broader market sentiments remain a key risk factor.
$ETH supply on exchanges has fallen to its lowest levels since 2016
Institutions are buying so much $ETH right now pic.twitter.com/emM8bEBFEI
— That Martini Guy ₿ (@MartiniGuyYT) December 19, 2025
Technical Rebound with Cautious Outlook
ETH’s recent price movement follows a common pattern where prices bounce back after falling a little too much, too fast. A key indicator, RSI, plunged down to 27.48, which indicates an oversold territory since September 2025, triggering short-covering and dip-buying near Fibonacci support at $2,626.
The MACD histogram is at -20.64, which shows bearish momentum fading, and hinting towards clear exhaustion. Traders betting on a drop bought back ETH to exit their positions, while bargain hunters bought near $2,626.
This buying was the fuel that pushed ETH up quickly, however, the recovery is still fragile. The price is trading below its recent average of about $3,008, which acts as a resistance level.
If ETH can clearly move above $3,036 zone, it would signal a stronger trend change and could open the door toward $3,200.
For now, the signals are mixed. The bounce was driven mainly because of the technical factors, and not by strong market confidence. If ETH fails to stay above $2,950, it could slip backward towards $2,841. Low trading volume also suggests many investors are still cautious, limiting the strength of the move.
Also Read: Ethereum Proposal ERC-8092 Aims to Link Blockchain Accounts Across Chains
