Ethereum (ETH) crashing? Important levels that can cause a free fall

Ethereum is trading around $2,800 after a weekly decline of 12%, with analysts warning of further downside as key support levels continue to fall.

Market activity remains high, with a 24-hour trading volume of $31.3 billion. Traders are keeping an eye on price levels as pressure mounts around key support.

Breakdown signals further weakness

Ethereum has broken below a rising trendline, ending a brief period of upward movement. It appears that the asset is now following a wider downward channel that has been going on for several months. This move opens up the opportunity to test deeper price levels. Analyst Colin talks about Crypto said,

“Splitting. Goal of $2100 – $2400.”

Notably, these levels are consistent with previous areas where the price has found support in previous cycles. Current price action is hovering just below $2,950. As previously reported, a monthly close below this level could push Ethereum to $2,000 or possibly even $1,100.

Furthermore, ETH continues to trade below a key resistance level near $3,660. Unless that line is regained, the pattern of lower highs and lower lows will remain in place. Chart analysis shows repeated price rejections from zones between $3,250 and $3,400, where sellers have been active.

Crypto Patel shared his view: “$ETH remains bearish below USD 3,660. A clear break and hold above this level would mark a structural shift.The most recent move shows an 18% decline from the $3,400 area, based on the chart.

Offers on stock exchanges at record lows

Ethereum held on exchanges is now at its lowest level since 2016. The current supply ratio on the exchange is around 0.137, according to data from CryptoQuant. This suggests that there are fewer coins available for quick sale as more ETH is removed from exchanges. CW noted,

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“The supply of $ETH on the exchange falls to its lowest level since 2016, signaling increased caution among traders and reduced selling pressure in the near term.”

This change reflects a change in behavior, but the price remains under pressure from broader market trends. However, selling pressure remains high as large holders continue to sell ETH. Ted said,

“Binance whales have been selling $ETH non-stop this month.”

Consistent selling by deep pockets adds pressure during already weak market conditions. Meanwhile, the trend may continue unless Ethereum breaks above key resistance levels. Traders are keeping an eye on the $2,630 and $2,930 zones as the final weeks of December unfold.