The Ethereum market has had a tumultuous journey in 2025, marked by significant fluctuations. Starting the year with bearish momentum, Ethereum experienced a staggering decline exceeding 60% by April. However, the landscape shifted dramatically as the year progressed, culminating in a new all-time high of approximately $4,955 in August. Currently, Ethereum's price is about 40% below this peak, sparking conversations about how the asset will close out the year.

Market analyst Ali Martinez recently shared insights into critical price levels that may dictate Ethereum's future. In a post made on December 19, he emphasized the importance of certain price zones that could cushion Ethereum against further bearish movements. Martinez's analysis is underpinned by data from the URPD (UTXO Realized Price Distribution) metric, which illustrates where Ethereum's current supply last transacted on-chain.

According to the chart shared by Martinez, the $2,772 price mark shows a high concentration of Ethereum holdings. This suggests that many investors acquired their ETH around this level, leading to a strong psychological support. As a result, investors are likely motivated to defend their positions, creating a buffer against further declines.

If Ethereum manages to hold above $2,772, it could see increased buying activity, which would counterbalance the existing sell-pressure. However, should the price break below this key support, Martinez has identified potential resistance levels at $3,211 and $3,224 that could pose challenges for a bullish reversal.

In the event that the $2,772 support fails, Martinez cautions that Ethereum could plummet to the next psychological support at $2,489. The chart indicates that a reasonable amount of ETH supply was last transacted in this price region. However, given the relatively low volume of transactions at this level, it may only provide temporary relief. A continued decline could lead to an eventual drop to the last significant support level around $1,866, which would indicate a serious sentiment shift in the market.

As of now, Ethereum is trading at approximately $2,987, reflecting a 5.56% gain over the past 24 hours. The recent surge in exchange outflows, totaling $978 million, has been interpreted as a potential sign of dip buying, further adding to the market's complexities. With these dynamics at play, market participants are closely monitoring Ethereum's price action as it approaches these critical levels.

The landscape for Ethereum remains uncertain, with both bullish and bearish scenarios on the table. Analysts and investors alike will be keeping a keen eye on these pivotal price points as the end of the year approaches, wondering how Ethereum will navigate the challenges ahead. Whether it can reclaim its previous highs or will face continued downward pressure remains to be seen. The next few weeks will be crucial for the altcoin's trajectory as it seeks to establish a foothold in the ever-evolving crypto market.