The 29-year-old and her 21-year-old sister were pulled unconscious from the auto wreckage following the crash in New South Wales, their parents Lars and Vivian having been killed instantly.
While Jessica's parents were killed instantly, her sister Annabelle died days after the head-on vehicle crash that occured on the NSW South Coast.
A bedside vigil had been made for Jessica in the Intensive Care Unit at St George Hospital, where she was in a medically induced coma.
There has been no official confirmation from the NSW Police or hospital that the actress has died.
Jessica Falkholt in a scene from Home and Away.
The 4WD driver, Ulladulla man Craig Anthony Whitall, 51, was also killed. He had previously been subject to a nine-year driving ban and had at least 10 convictions for driving while disqualified.
The 29-year-old reportedly had her life support switched off by her family, however the following morning St George's Hospital, Sydney confirmed to Metro.co.uk that she remains in a critical condition.
The Falkholt family was remembered as an inseparable, radiant group.
Vivian Falkholt's brother Paul Ponticello spoke at their funeral, saying he thought he and his sister "would grow old together".
A funeral service for Lars, Vivian and Anabelle took place in Sydney on Wednesday.
Mr Whitall, a P-plater, was reportedly driving home from a methadone clinic when the collision occurred.
"Their lives ending on a highway makes absolutely no sense".
"They are together and always will be", he said.
Falkholt played Hope Morrison on the long-running Australian soap opera. She had just completed filming for the title role in "Harmony", scheduled for a 2018 theatrical release.
"Lars, Vivian and Annabelle will be deeply missed by Vivian's brother Paul Ponticello, his children Paul and Natalie, along with many relatives and friends both near and far", the notice read.