Ethereum Could Drop to $2,000 If December Closes Below $2,930

An analysis suggests Ethereum is trading within a long-term Parallel Channel on its monthly chart.

Key Points

Ethereum has been moving within a Parallel Channel, characterized by two parallel trendlines, for several years.
The channel helps identify potential support and resistance levels:
- Upper level facilitates top formations; lower level acts as a support boundary.
The current Parallel Channel is horizontal, showing no slope, indicating sideways consolidation.
A breakout above the upper level could signal a bullish trend, while falling below the lower level may indicate a bearish trend.

Ethereum Parallel Channel

Ethereum's price has fallen to around the midpoint of the Parallel Channel at $2,930 due to recent bearish trends.
If Ethereum closes December below this point, it might decline further:
- Next support level at $2,000.
- Further drop could reach the bottom line at $1,090, last tested in 2022.

Ethereum is currently priced at approximately $2,860, having decreased over 15% in the past week.