Ethereum accumulates a retracement exceeding 11% since December 10, pressured by an adverse macroeconomic environment and massive liquidations in the market. Amidst this bearish scenario, JPMorgan has confirmed the launch of its tokenized fund “MONY” with an initial capital of 100 million dollars, although the ETH price continues showing technical weakness by struggling to hold fundamental support levels.
The largest bank by market capitalization reinforces its bet on digital infrastructure by deploying this investment vehicle directly on the network. According to the official announcement, the firm has seeded the fund with its own capital before opening it to outside investors this Tuesday, which validates the network’s utility as institutional settlement infrastructure. However, the immediate market reaction has been tepid, as technical indicators suggest that selling pressure continues to dominate the short-term narrative.
On the other hand, daily chart analysis reveals a worrying structure with the formation of a bearish cross between exponential moving averages. The 100-day EMA is about to drop below the 200-day EMA, a signal that historically indicates considerable weakening in buying momentum. This technical pattern suggests that, despite positive fundamental news, the asset could face difficulties reversing the negative trend if it fails to overcome key resistance barriers in upcoming sessions.
Likewise, on-chain data indicates that the percentage of addresses in profit has fallen drastically, reaching minimum levels not seen since the beginning of the month. Historically, these points of “maximum pain” for investors have coincided with local rebounds, such as the one observed on December 1 which generated a quick 14% gain. This implies that selling pressure could be reaching a point of exhaustion, provided buyers manage to defend the current price zone and avoid new annual lows.
Will institutional backing prevent an imminent technical collapse on the charts?
For the recovery scenario to materialize, it is imperative that the asset’s value holds firm above the critical support of 2,910 dollars at the daily close. A confirmed break below this mark would invalidate any bullish setup and expose the market to a deep drop towards 2,710 dollars, with extended risks down to 2,620 dollars if market stress intensifies in the short term.
However, to restore confidence and attract new capital, Ethereum bulls must reclaim the 3,240 dollar level with convincing volume. Overcoming this resistance would ease immediate bearish pressure and open the door towards higher targets at 3,440 dollars, marking a more sustainable trend change for cryptocurrencies. Until then, any rally should be interpreted with caution, as the asset remains trapped between long-term institutional optimism and immediate technical fragility.
Finally, the convergence between big bank adoption and price weakness creates a crucial defining moment for the ecosystem. While the market digests JPMorgan’s capital entry, traders’ attention will focus exclusively on defending key supports. Thus, the coming days will determine if the adoption narrative prevails or if the bearish structure forces a final capitulation before any real recovery attempt.
