Ethereum Price Drops 8%, Key Support Levels at Risk

The recent price action for Ethereum marks a significant technical deterioration. The asset has decisively broken below a rising trendline that had supported a short period of upward movement, as noted in the analysis. This breakdown has confirmed its position within a broader downward channel that has been established over several months, reinforcing a pattern of lower highs and lower lows. The immediate consequence is that Ethereum now faces the risk of testing much deeper price levels that previously served as historical support.

Analyst Colin Talks Crypto explicitly targeted the $2,100–$2,400 range following this breakdown, levels that align with significant support areas from past market cycles. Current trading just below $2,950 is precarious; a monthly close beneath this level could, as reported, catalyze a move down to $2,000 or even as low as $1,100. Furthermore, Ethereum continues to trade well below a major resistance level near $3,660. Crypto Patel emphasized this point, stating, “$ETH remains bearish below $3,660. A clean break and hold above this level would mark a structural shift.” The chart shows repeated rejections from the $3,250–$3,400 zone, with the most recent decline from that area measuring approximately 18%.

In a seemingly contradictory signal, the amount of Ethereum held on centralized exchanges has plummeted to its lowest level since 2016. Data from CryptoQuant shows the exchange supply ratio at about 0.137. This metric suggests a reduction in coins readily available for quick sale, as more ETH is being withdrawn to private wallets or staking contracts. The behavior, as interpreted by commentators like CW, signals “increased trader caution and reduced short-term selling pressure,” indicating a potential shift toward longer-term holding strategies among a segment of the market.

However, this decline in exchange liquidity has not been sufficient to counteract the prevailing selling pressure. Reports indicate that large holders, or “whales,” have been actively distributing their ETH holdings. As Ted noted, “Binance whales have been selling $ETH non-stop this month.” This consistent selling from major wallets adds significant downward pressure during an already weak market environment, demonstrating that while overall exchange supply is low, the remaining active sellers are impactful enough to drive prices lower.

With the breakdown confirmed and mixed signals from on-chain data, trader focus has sharpened on specific price zones that will dictate Ethereum’s trajectory in the final weeks of the year. The immediate battleground lies between $2,630 and $2,930. Holding above these levels is crucial to prevent the accelerated decline forecast by technical analysts. A failure to defend $2,930, followed by $2,630, would open the path toward the $2,100–$2,400 target zone identified by Colin Talks Crypto.

The overarching narrative remains one of bearish control until Ethereum can achieve a decisive breakout above the $3,660 resistance level. Until that occurs, the established pattern of lower highs and lower lows remains intact, and any rally is likely to be met with selling, as evidenced by the repeated rejections near $3,400. The confluence of a broken trendline, a multi-month descending channel, persistent whale selling, and the approach of key monthly closes creates a high-stakes environment for ETH, where the failure of current support could indeed trigger a more severe freefall.