JPMorgan’s Ethereum Bet Faces a Key Price Test — Bounce or Further Drop?
Ethereum has been among the weakest major cryptocurrencies during the recent market selloff. ETH is down more than 6% in the last 24 hours, pushing weekly losses close to 9%, as macro uncertainty and liquidations continue to pressure the market.
Despite this weakness, a major institutional update has brought Ethereum back into focus. JPMorgan has launched its first tokenized money market fund on Ethereum, seeded with $100 million. The big question now is whether this news can help ETH stabilize — or if technical pressure will push prices lower.
Institutional Support vs. Technical Pressure
JPMorgan’s move highlights Ethereum’s growing role as institutional infrastructure. The new tokenized fund, called MONY, is being launched through JPMorgan’s digital asset platform, starting with a $100 million allocation before expanding to external investors.
From a long-term view, this strengthens Ethereum’s fundamentals. In the short term, however, the chart remains fragile. ETH is nearing a bearish EMA crossover on the daily timeframe, with the 100-day EMA close to slipping below the 200-day EMA — a signal that momentum is weakening.
With ETH struggling to hold the $2,910 support zone, even strong headlines may fail to trigger a sustained rally unless key resistance levels are reclaimed.
On-Chain Data Keeps the Rebound Scenario Alive
On-chain metrics suggest a potential short-term bounce — but only if support holds. The percentage of Ethereum addresses in profit has dropped sharply since December 10, now sitting at its lowest level since early December.
Historically, similar drops in this metric have aligned with short-term rebounds. Earlier this month, comparable conditions preceded rallies of 10–14%. While this doesn’t guarantee a bounce, it indicates that selling pressure is entering zones where buyers previously stepped in.
Key ETH Levels to Watch
Ethereum is currently testing the critical $2,910 support. A daily close below this level would weaken the rebound case and open downside targets
