Ethereum’s New Year’s Resolution: $2,400? 🚀💸

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After being politely declined by the $3,000 level, Ethereum is now trying to find a new home in the $2,900 neighborhood, which is currently occupied by a very grumpy support zone. Some analysts have suggested that the altcoin must reclaim the crucial resistance soon, or risk a potential drop to new multi-month lows… which, let’s be honest, is just Ethereum’s way of saying “I’m not ready for the spotlight yet.”

Ethereum Forms Head And Shoulder Pattern

Amid the broader market volatility, Ethereum has been attempting to hold the recently reclaimed $2,900 level as support to potentially challenge higher resistance levels in the coming days. It’s like watching a toddler try to balance a stack of blocks-mostly chaos, but maybe, maybe, something will stick.

The cryptocurrency has been trading within the $2,800-$3,400 price range over the past month, hitting a high of $3,447 nearly two weeks ago. Since reaching the local high, ETH has struggled to hold the range’s high, falling to the lows again during last week’s market correction. It’s like a yo-yo, but the string is made of existential dread.

Amid this performance, the King of Altcoins is currently registering its worst Q4 performance since 2019, with a negative performance of 28.76%. Moreover, it is also recording a red December so far, trading 1.3% below its monthly opening of $2,991. Welcome to the club, Ethereum-where even your own price is a disappointment.

Some analysts have warned that ETH’s pain may not be over, as it appears to be forming a pattern that could spell trouble for the cryptocurrency. In a Tuesday X post, Ali Martinez suggested that Ethereum started forming a head and shoulder pattern following the massive corrections that sent most cryptocurrencies to multi-month lows. It’s like a bad horror movie-predictable, but still terrifying.

Per the chart, the altcoin formed the left shoulder between late November and early December after bouncing from the $2,780 support. Meanwhile, the pattern’s head was formed during the mid-December rebound that led to the $3,400 local high. If this is a head and shoulders pattern, I’m starting to think the shoulders are just trying to escape the head.

Now, as price is rejected from the $3,000 area again, the cryptocurrency appears to be forming the right shoulder. This suggests that ETH’s price could drop to the $2,800 area to complete the pattern’s formation. It’s like a bad breakup-no one’s happy, but the drama is real.

Martinez noted that if the pattern is completed, it could lead to a 15% potential move toward $2,400, a level not seen since the start of the Q3 breakout. Let’s just say, Ethereum is currently playing a very risky game of chicken with its own price chart.

ETH Price In Trouble?

Other market observers suggested Ethereum could be in trouble after being rejected from the $3,000 barrier again. Ted Pillows noted that the altcoin tried to reclaim this level but failed, closing Monday around the $2,948 area. It’s like trying to convince a toddler to eat vegetables-futile and slightly tragic.

To the analyst, If ETH doesn’t reclaim this key barrier soon, it could likely drop towards the $2,700-$2,800 support zone. On the contrary, a daily close above this level would set the base for a rally toward the $3,300 level. It’s a binary choice: either Ethereum becomes a hero or a cautionary tale.

Similarly, Sjuul from AltCryptoGems affirmed that Ethereum “is a bit in trouble after that nasty bearish deviation on top of the range.” He highlighted the altcoin’s rejection from the mid-December highs, which sent the price to the lower zone of its one-month range. Welcome to the rollercoaster, Ethereum-no seatbelts, just regret.

Based on this, the analyst suggested that investors could expect “the same to happen on the lower band,” which would see the price retest the $2,600-$2,700 area, and drop as low as $2,400, before bouncing toward the range highs again. It’s like a broken record, but with more financial anxiety.

Nonetheless, Sjuul declared that “bulls need to establish a proper uptrend here because losing $2700 would be a negative sign.” Let’s just say, the bulls are currently on a very long walk.

As of this writing, Ethereum is trading at $2,933, a 2.53% decline in the daily timeframe. It’s like watching a car crash in slow motion-both horrifying and impossible to look away from.

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2025-12-24 11:20