A cryptocurrency analyst has explained where Ethereum could go next based on a long-term parallel channel formed in its monthly price chart.
Ethereum has been trading in a parallel channel for a few years
In a new article on X, analyst Ali Martinez talked about a long-term pattern that Ethereum appears to have followed in recent years. The trend in question is a “parallel channel” from technical analysis (TA), which forms whenever the price of an asset trades between two parallel trend lines.
The upper level of a parallel channel is likely to facilitate higher formations of the asset, while the lower level can act as a support boundary and allow the price to stay above.
Parallel channels can be of different types depending on how the lines are oriented relative to the graph axes. If the channel has a certain slope, it falls into the Ascending or Descending categories. Naturally, it is the first when the lines are tilted upwards and the second when they are downwards.
In the context of the current topic, the simplest type of parallel channel is relevant: a zero-slope channel. That is, a pattern with lines parallel to the time axis. When an asset trades within such a channel, it undergoes consolidation exactly sideways.
If one of the levels of the trend breaks, a sustained continuation of the trend may occur in that direction. This means that a rise above resistance can be a bullish signal, while a fall below support can be a bearish signal.
Now, here is the chart shared by Martinez that shows the parallel channel that the monthly price of Ethereum has been trading in for the past few years:
As seen in the chart above, Ethereum’s recent bearish wave has caused its 1-month price to move back up to the parallel channel’s midline located at $2,930.
Martinez noted that if ETH closes December below this level, a decline to lower levels could occur. The next potential support is at $2,000, corresponding to the 25% mark of the Parallel Channel. The cryptocurrency found support around this line during the first months of 2025.
In the event that this level also fails, Ethereum could be looking at a parallel channel bottom line decline to $1,090. The asset last retested it in 2022 and successfully found support.
It now remains to be seen how ETH will close the month and whether one of the next two levels of the pattern will come into play.
ETH Price
At the time of writing, Ethereum is floating around $2,860, down more than 15% over the past seven days.
