Ethereum (ETH), the second-largest cryptocurrency by market capitalization, is trading close to $2,800 after suffering a 12% decline over the past week. Analysts express concerns over additional losses as vital support levels continue to falter.

Breakdown Signals Further Weakness

ETH has dropped below a rising trendline, signaling the end of a brief upward trend. The current trajectory follows a long-term declining channel. Analysts suggest this trend could lead to a test of lower price points. Colin Talks Crypto remarked:

“Break down. $2100–$2400 target.”
“Lez ule de bémayit. $2100–$2400 hedefi.”

This target aligns with previous support areas in past cycles. The current price is hovering just below $2,950, and as previously reported, if ETH closes below this mark monthly, it may decline to around $2,000 or even lower.

Moreover, ETH remains below a significant resistance zone near $3,660. The downward trend of lower highs and lows might persist unless this level is surpassed. Chart data shows repeated rejections around $3,250–$3,400.

Crypto Patel commented on the situation:

“$ETH remains bearish below $3,660. A clean break and hold above this level would mark a structural shift.”
“$ETH, $3,660’ın altında ayı piyasasında devam ediyor. Bu seviyenin üzerinde net bir kırılma ve tutunma, yapısal bir değişikliği işaret edecektir.”

The recent activity reflects an 18% drop from the $3,400 range, according to chart analysis.

Supply on Exchanges at Record Low

Ethereum supply on exchanges is now at its lowest since 2016. According to CryptoQuant, the exchange supply ratio is about 0.137. This indicates a decrease in available coins for immediate sale as a majority of ETH is being withdrawn from exchanges. CW pointed out:

“$ETH exchange supply drops to its lowest levels since 2016, signaling increased trader caution and reduced short-term selling pressure.”
“$ETH borsa arzı, 2016’dan bu yana en düşük seviyelerine düştü, bu da artan yatırımcı ihtiyatı ve kısa dönemli satış baskısının azaldığını gösteriyor.”

Despite fewer coins available for quick transactions, selling pressures persist as large holders continue to offload their ETH. Ted added:

“Binance whales have been selling $ETH non-stop this month.”
“Binance balinaları bu ay $ETH’yi durmaksızın satıyor.”

Current trends suggest that unless Ethereum breaks through key resistance levels, the downtrend might hold. Traders remain vigilant around the $2,630 and $2,930 levels as December unfolds.