Ethereum (ETH) Crashing? Key Levels That Could Trigger a Freefall

Ethereum trades near $2,800 after a 12% weekly drop, with analysts warning of further downside as key support levels continue to break.

Ethereum (ETH), the second-largest crypto by market cap, is trading at around $2,900 after falling by about 8% over the past week.

Market activity remains high, with 24-hour trading volume at $31.3 billion. Traders are watching price levels as pressure builds around key support.

Breakdown Signals Further Weakness

Ethereum has broken below a rising trendline, ending a short period of upward movement. The asset now appears to be following a wider downward channel that has been in place for several months. This move opens the possibility of deeper price levels being tested. Analyst Colin Talks Crypto said,

“Break down. $2100–$2400 target.”

Notably, these levels match previous areas where the price found support in past cycles. Current price action is hovering just below $2,950. As reported earlier, a monthly close below this level could push Ethereum down to $2,000 or possibly even as low as $1,100.

In addition, ETH continues to trade below a key resistance level near $3,660. Unless that line is reclaimed, the pattern of lower highs and lower lows remains in place. Chart analysis shows repeated price rejection from zones near $3,250–$3,400, where sellers have been active.

Crypto Patel shared his outlook: “$ETH remains bearish below $3,660. A clean 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.

Supply on Exchanges at Record Low

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

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“$ETH exchange supply drops to its lowest levels since 2016, signaling increased trader caution and reduced short-term selling pressure.”

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

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

Consistent selling from major wallets adds to the pressure during already weak market conditions. Meanwhile, unless Ethereum moves above key resistance levels, the trend may continue. Traders are watching the $2,630 and $2,930 zones as the final weeks of December unfold.