Ethereum has faced a 4% dip, trading at $3,354.5 amid a broader crypto market decline, with the total crypto cap dropping to $3.32 trillion. Technical analysis shows Ethereum was rejected at the $3,524 zone, with MA 20 and 50 failing to provide support. A death cross on December 23 signaled this dip. Trading activity fell by 10.06%, and the long/short ratio at 0.846 reflects bearish sentiment as 54.17% of open trades are shorts.

CryptoQuant data indicates exchange reserves are declining, with only 19.05 million ETH held, suggesting confidence among investors as assets move to cold wallets. ETF flows on December 24 saw modest inflows, led by Blackrock’s ETHA at $43.90 million.

While the market appears bearish, declining exchange reserves suggest growing confidence in Ethereum's long-term prospects. The market's unpredictable behavior may lead to unexpected upward movement, rewarding strategic investors who act wisely despite short-term bearish trends.