Analyst Says Ethereum Faces Risk of Slide To $2000 If December Ends Low

TLDR

Table of Contents

Ethereum is trading near $2860 after dropping over 15 percent in the past week.
Analyst Ali Martinez notes a Parallel Channel forms the long-term price range.
December closing below $2930 could lead Ethereum toward the next support at $2000.
Lower support of Ethereum is identified at 1090 within the Parallel Channel.

Ethereum’s price action in December could determine the next major move, according to technical analyst Ali Martinez. The cryptocurrency has been trading inside a long-term Parallel Channel for several years. Martinez noted that a monthly close below $2,930 could signal a decline toward $2,000. Ethereum currently trades around $2,860 after losing more than 15 percent in the past week, making December’s close crucial.

Ethereum’s Long-Term Parallel Channel

Ethereum has been moving within a Parallel Channel on the monthly chart, a pattern that guides potential price support and resistance. A Parallel Channel is formed by two lines running parallel to each other, defining a range where the asset consolidates.

The upper line often represents a resistance level, while the lower line acts as support. Ali Martinez explained that Ethereum has been trading within this sideways channel for the last several years, showing periods of consolidation.

The simplest form of this pattern, with zero slope, suggests consolidation without a clear upward or downward trend. When price breaks one of the levels, it often signals a continuation in that direction.

Key Support Levels to Watch

Martinez highlighted that the midway line of the channel sits at $2,930. A monthly close below this level could trigger a decline to the next support level at $2,000. Ethereum had found support around this price in early 2025.

If the $2,000 level fails, the lower line of the Parallel Channel at $1,090 could be tested. Ethereum last retested this level in 2022 and successfully bounced back. Analysts suggest that these levels will be key for traders monitoring December’s close.

Ethereum currently trades around $2,860, down over 15 percent in the last seven days. The price movement this month will likely determine whether the cryptocurrency continues consolidation or moves lower.

Technical Signals and Market Implications

Parallel Channels can be ascending, descending, or flat depending on their slope. Ethereum’s current flat channel indicates neutral consolidation with potential for a directional breakout.

A break above the resistance may signal a bullish move, while a fall below support could indicate further declines. Martinez shared a chart showing Ethereum’s price retracing to the channel’s midpoint, emphasizing December’s monthly close as critical.

Traders and investors are watching these levels closely, as a breach could influence trading strategies and market sentiment. Liquidity and volatility in the Ethereum market may respond quickly to such movements.

Recent Price Action

Ethereum’s retracement to $2,930 comes after a week of losses exceeding 15 percent. The cryptocurrency has seen fluctuations within its long-term range for several years.

Market observers note that a sustained break below the support could lead to testing lower levels in the channel. The coming days will be decisive for the monthly close, potentially shaping the outlook for Ethereum in early 2026.

Ali Martinez stated that monitoring the Parallel Channel is essential for predicting the next significant move. Investors are advised to follow the price levels closely as December concludes.