Ether (ETH) is facing heightened selling pressure as key technical indicators signal potential for further declines. The Market Value to Realized Value (MVRV) ratio, a critical on-chain metric, shows weakening support levels that historically precede extended corrections. Concurrently, ETH’s price action has formed a bearish pennant pattern on daily charts, suggesting consolidation before a possible downward breakout.
Should this pattern resolve negatively, analysts identify the $2,500 to $2,200 range as the next significant support zone. This area represents a crucial test for market structure, where buyer interest has previously emerged during 2023’s volatility. Current derivatives data indicates rising put option interest at these levels, reflecting trader anticipation of continued pressure.
The convergence of these technical factors creates a challenging environment for December’s price trajectory. Market participants are closely monitoring trading volume and exchange flow metrics for signs of accumulation or distribution. While broader cryptocurrency market sentiment remains cautious, Ether’s fundamental network activity continues demonstrating robust utility, potentially providing longer-term stabilization above critical support thresholds.
