Ethereum (ETH), the second-largest cryptocurrency by market value, is currently priced at around $2,900. Over the past week, its price has dropped roughly 8%. Trading activity remains high, with $31.3 billion worth of ETH traded in the last 24 hours. Many traders are closely watching key price levels, as there’s ongoing pressure on Ethereum’s value.
What’s Driving the Price Drop?
Recently, Ethereum’s price went below a key rising trendline. This means the small upward price trend that started earlier has ended. Now, it looks like Ethereum is following a downward pattern that has been ongoing for a few months. This suggests that the price could dip even lower. An analyst, Colin Talks Crypto (a cryptocurrency expert), commented, “Break down. The target range is $2,100 to $2,400.”
These possible price levels match earlier points where Ethereum’s price stopped falling during past market cycles. Currently, the price is struggling just below $2,950. If the monthly price closes below this number, ETH could drop further to $2,000 or even $1,100.
Resistance Levels and Challenges
In trading, a resistance level is a price where many sellers prevent the value from going higher. For Ethereum, an important resistance level is near $3,660. If ETH does not go above this line, its pattern of lower prices is expected to continue. Ethereum has been consistently unable to rise above the $3,250 to $3,400 range—areas where sellers have been active.
Another cryptocurrency commentator, Crypto Patel, said, “Ethereum will remain weak below $3,660. A clear rise and stay above this level would show a positive shift in the trend.” From earlier charts, ETH has already fallen 18% from its recent high near $3,400.
What’s Happening with ETH Supply?
The amount of Ethereum available on cryptocurrency exchange platforms like Binance is at its lowest since 2016. At the moment, only about 0.137 of the total ETH supply is sitting on exchanges (CryptoQuant data). Since less ETH is available for quick sale, it suggests that more people are moving their coins off exchanges, possibly to hold long-term. This trend shows caution among traders and may indicate reduced short-term selling pressure.
However, despite less ETH on exchanges, some large holders (often called ‘whales’) are still selling. A market participant noted, “Big Ethereum holders on Binance have been selling non-stop this month.” Such consistent selling from large wallets adds pressure to Ethereum’s market price, especially when the overall market trends are weak.
What’s Next for Ethereum?
Market experts believe the future of Ethereum’s price depends on whether it can rise above certain resistance points. For now, key support areas to watch are between $2,630 and $2,930. The final weeks of December will play a crucial role in determining Ethereum’s next direction. If the price stabilizes and rises above $3,660, it could signal a recovery. Otherwise, the downward trend may continue.
Ethereum’s current challenges might worry some traders, but others see this as part of normal market cycles. Whether ETH can overcome selling pressure and regain strong price levels remains a question for now.