Can It Survive Below $2,930?

Key Insights:

• ETH’s monthly close above $2,930 is critical—failure could lead to further sharp losses.
• Market makers may spark upside squeeze, but weak buying limits momentum near key resistance zones.
• A bullish head and shoulders pattern stays valid unless Ethereum breaks below rising trendline support.

Ethereum was trading near a key support level that could decide its short-term trend. As of December 16, ETH is priced at $2,941.85, up 1.0% over the past 24 hours. Despite the slight daily gain, the asset is down 12.8% for the week. Market participants are closely watching the $2,930 level as the monthly close approaches.

$2,930 Acts as a Line in the Sand

The $2,930 level was considered critical by many technical analysts. According to data shared by Ali Charts, a monthly close below this point may bring extended downside risk. ETH has traded above this zone for much of the year, and a failure to hold could shift sentiment.

“Closing December below $2,930 could send Ethereum to $2,000—or even as low as $1,100,” the analyst posted. This support level aligns with previous consolidation ranges seen during 2022 and 2023. Below it, historical trading activity shows less volume, which could lead to sharper price moves.

Liquidity Thinned Out Below Current Levels

Market depth charts from Coinglass, shared by Ted Pillows, show that sell-side liquidity has mostly cleared below $2,900. The thinning order book may limit downside pressure in the short term. However, low buying interest is also noticeable.

“Downside liquidity is nearly gone. Max pain is now leaning upward, but buyer momentum is weak,” he commented. With limited resistance in the $3,000–$3,100 zone, conditions are in place for a potential price squeeze. If market makers decide to move prices rapidly, short positions could be targeted to trigger a temporary spike.

A Pattern Builds on the Daily Chart

Another factor under discussion is a possible inverse head and shoulders formation. Donald Dean posted a chart showing this setup, with the head forming earlier in the year and shoulders near the current level. The structure remains valid as long as ETH continues to form higher lows.

Donald Dean added,

However, If that level reached, a longer-term target near $4,955 could follow. On the other hand, a break below trendline support would cancel the pattern and expose the asset to lower ranges, including the $2,200–$2,600 area where previous volume has been concentrated.

Traders Eye Monthly Close

With two weeks left in December, attention is on how ETH finishes the month. Holding above $2,930 would keep bullish scenarios on the table. A close below it may set the stage for another leg lower. Current conditions show low momentum, thin liquidity, and mixed signals from technical patterns.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.