Since early October, when Ethereum’s price began its slide into bearish territory, it has struggled to reclaim any major price levels. Throughout November, the Ether token failed to hold multiple support zones as it continued to decline.
While Ethereum appears to be gaining some bullish momentum that could signal a potential reversal, the latest drop to around $3,000 makes a continued bearish trend seem more likely. A popular analyst has recently shared a concerning outlook for the world’s second-largest cryptocurrency.
$2,400 Could Be the Next Support Level for ETH
In a December 13 post on X, market analyst Ali Martinez pointed out that Ethereum’s price is showing signs of a potential bearish continuation in the coming weeks. Martinez’s analysis focuses on a bear flag pattern—a technical formation often used to confirm a continuing downtrend.
Typically, this pattern consists of two parts: the flagpole and the flag. The flagpole forms from a sharp initial price drop, followed by a period of upward or sideways movement that creates the “flag.” The flag is defined by upper and lower boundaries that act as resistance and support.
A breakdown below the flag’s support level usually confirms the bearish signal. If this happens, Martinez suggests Ethereum could fall toward the $2,400 price level, as earlier support regions may lack enough liquidity to spark a significant reversal.
Ethereum Whales’ Average Purchase Price Nears $2,400
Interestingly, on-chain data supports the importance of the $2,400 level. In a CryptoQuant Quicktake post, an analyst using the pseudonym OnChain noted that Ethereum is trading close to a key price point where large holders—often called “whales”—accumulated their positions.
According to the data, whales holding at least 100,000 ETH mostly bought around $2,400 per token. Historically, Ethereum has rarely fallen to price levels near this group’s average purchase price. Over the past five years, there have only been four instances where ETH nearly reached these whales’ entry point, each followed by a major recovery.
If history repeats, this could mark the start of another bullish rally for Ethereum.
As of this writing, Ethereum is valued at $3,086, down about 4% over the past day.
Frequently Asked Questions
FAQs Ethereums Bearish Pattern Potential Drop to 2400
BeginnerLevel Questions
1 What does a bearish pattern mean
A bearish pattern is a specific formation on a price chart that technical analysts use to predict that the price of an asset like Ethereum is likely to go down in the near future
2 Why is 2400 mentioned as a possible price target
Analysts use the size and shape of the bearish pattern to project how far the price might fall if the pattern completes 2400 is a calculated support levela price point where buying interest might temporarily halt the decline
3 Should I sell all my ETH if I see this pattern
Not necessarily Chart patterns are probabilities not certainties They are one tool among many Its important to consider your own investment strategy risk tolerance and not make decisions based on a single indicator
4 How long do these patterns take to play out
It varies Some patterns can resolve in days while others may take weeks Theres no fixed timeline so it requires ongoing monitoring
Advanced Practical Questions
5 What specific bearish pattern is being referred to here
Without seeing the exact chart common bearish patterns include the head and shoulders top descending triangle or double top Each has a specific structure that signals weakening bullish momentum and potential for a breakdown
6 What would confirm the pattern and make a drop to 2400 more likely
Confirmation typically comes when the price breaks and closes below a key support level or neckline defined by the pattern This breakdown is often accompanied by a significant increase in trading volume
7 Could other factors override this bearish pattern
Absolutely Major news large institutional buying or unexpected developments in decentralized finance can invalidate technical patterns
8 Where is the next major support if 2400 fails to hold
If 2400 is a significant support and it breaks analysts would look to the next historical support zone This could be around 2200 or even lower towards the 2000 psychological level depending on the market structure