Ethereum charts print bearish patterns, hinting at a potential December price decline.
Key levels, including $2,800, will determine future market direction.
Whales maintain long positions, signaling confidence in long-term recovery.
As 2024 winds down, Ethereum (ETH) is printing bearish signals as price patterns resemble past market cycles. Year-end often brings volatility, and December might not be an exception. In 2016, Ethereum experienced major price drops in April, August, and December. Current trends suggest a similar downturn may unfold. Should traders prepare for potential declines this December?
https://twitter.com/GalaxyTrading_/status/1849386245924811026?t=iewIHr6K__qTqKJFEYHAJg&s=19 Key Levels to Monitor
The $2,800 price level is critical. If ETH breaks above this price, a deeper drop may be avoided. However, further declines could occur if this level isn't reached, pushing the price to the $2,300 support and possibly $2,000.
Additionally, the ETH/BTC pair's struggling to surpass the 50-day simple moving average (SMA), adding to the uncertainty. In past cycles, a breakout above this SMA often led to significant bullish moves. Currently, that scenario remains out of reach, suggesting that a market bottom might not have formed yet.
Traders should remain cautious, as enthusiasm can cause premature bullish sentiment without confirmation. Rival platforms like Solana continue to challenge Ethereum's dominance. Competition and internal ecosystem issues increase bearish pressure. Given the current price action, further declines seem likely.
Traders looking for opportunities might consider short positions. Recent profit-taking by the Ethereum Foundation also contributes to bearish sentiment. Selling 100 ETH raised concerns among traders, adding to the uncertainty in the market.
Whales Maintain Long Positions
Despite the challenges, Ethereum has undergone significant changes since 2016. Key developments like the Merge and the 4844 upgrade have transformed this cryptocurrency. Whale activity remains strong, with data showing that 73.14% of accounts still hold long positions.
This indicates strong confidence in long-term prospects. While the short-term outlook appears bleak, large holders express optimism about future recovery. Once price stabilization happens and both ETH/USDT and ETH/BTC establish solid bottoms, traders may find enticing buying opportunities.
For now, ETH is showing bearish signals, resembling past cycles that saw significant year-end declines. Key levels, including $2,800, could determine whether further drops occur. Despite short-term uncertainty, whales maintain long positions, signaling long-term confidence in Ethereum's recovery.
The post Ethereum Watch: Could December Bring a Price Drop Similar to Past Cycles? appeared first on Crypto News Land.
