A cryptocurrency analyst has provided insights into Ethereum’s potential future trajectory based on a long-term Parallel Channel identified in its monthly price chart.
Ethereum’s Price Action within a Parallel Channel
In a recent post on X, analyst Ali Martinez discussed a significant long-term pattern that Ethereum has been adhering to over the past few years. This pattern is known as a “Parallel Channel,” a concept from technical analysis (TA) where an asset’s price fluctuates between two parallel trendlines.
The upper boundary of a Parallel Channel typically serves as a resistance level where price peaks may form, while the lower boundary is often perceived as a support level, helping to sustain the price above it.
Parallel Channels can be categorized into several types based on their slope in relation to the graph axes. An Ascending Parallel Channel has upward-angled lines, while a Descending Channel’s lines slope downward. For our discussion, the focus is on the simplest form of Parallel Channel: one that exhibits zero slope, meaning that the lines run parallel to the time axis. An asset trading within such a channel experiences a consolidation phase with a consistent sideways price movement.
Breaking through one of the channel levels can signal a substantial trend continuation in the respective direction. A breakout above resistance is considered bullish, whereas a drop below support indicates bearish potential.
The chart presented by Martinez illustrates the Parallel Channel within which Ethereum’s monthly price has been trading for several years:
The recent bearish trend has seen Ethereum’s price decline to the midway point of the Parallel Channel, positioned around $2,930. Martinez warns that should ETH close below this level by December’s end, further declines could ensue. The next area of potential support lies at $2,000, corresponding to the 25% mark of the Parallel Channel, where Ethereum previously found support in early 2025.
If the $2,000 level fails to hold, Ethereum may face a decline toward the bottom of the Parallel Channel, estimated at $1,090. This level was last retested in 2022, where it also managed to find support.
As the end of the month approaches, it will be crucial to monitor ETH’s price action and determine whether either of these significant levels will come into play.
Current Ethereum Price
As of the time of writing, Ethereum’s price hovers around $2,860, having experienced a decline of over 15% in the past week.
