Ethereum faces a potential decline to $2,000 if monthly prices close below a critical support level, according to technical analysis of a long-term trading pattern. The cryptocurrency has traded within a parallel channel formation for several years, with December's close determining the next directional move.

What Happened: Monthly Price Analysis

Analyst Ali Martinez identified a parallel channel pattern in ETH's monthly price chart spanning multiple years. The technical formation features two parallel trendlines that have contained price movement, with the asset currently testing the midpoint at $2,930.

The pattern operates as a consolidation range where the upper boundary typically marks resistance while the lower line provides support.

Ethereum's recent bearish momentum pushed prices down to this crucial midway point, creating a decision zone for December's monthly close.

Martinez stated that a December close beneath $2,930 would open downside targets. The first support level sits at $2,000, corresponding to the 25% mark within the channel where prices found stability in early 2025.

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Why It Matters: Support Breakdown

A breach of the current level could trigger extended losses to $1,090, marking the channel's bottom boundary. Ethereum last tested this lower support in 2022, successfully maintaining prices above that threshold during the previous bear market.

The parallel channel structure indicates sideways consolidation with zero slope relative to the time axis.

Breaks above resistance typically signal bullish continuations, while failures below support suggest bearish trends ahead.

Ethereum traded at $2,860 at press time, declining over 15% across seven days. December's monthly close will determine whether the cryptocurrency maintains its multi-year channel support or faces deeper corrections toward the $2,000-$1,090 range.

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