Ether Price Analysis: Will ETH Continue To Decline In December?

Ether risks a deeper sell-off toward $2,500–$2,200 as MVRV support weakens and a bearish pennant threatens to break lower.

Ethereum’s native token, Ether (ETH), extended its downturn into December after falling roughly 30% over the past three months, raising worries about how much further the sell-off could run by year’s end.

ETH could slide toward $2,500–$2,200 if MVRV support and the pennant break down.

A potential falling wedge breakout keeps bulls’ hopes alive for a rally to $3,550.

As of Tuesday, Ether retested its −0.5σ MVRV deviation band (teal), currently sitting near $2,820–$2,830, as support for the second time in a week, Glassnode data shows.

The MVRV bands compare Ether’s market price with the levels where holders last moved their coins, often highlighting key support and resistance zones.

As a result, the −0.5σ band repeatedly acted as an important mid-cycle support during downtrends.

In March, ETH’s decisive close below the −0.5σ band preceded a 40% decline, with price gravitating toward the realized price band (purple) as the first major downside target.

A sustained breakdown below the −0.5σ support this time would again shift focus toward the realized price near $2,500, a level that has historically functioned as a downside magnet during corrective market phases.

Ether’s recent price action compressed into a bearish pennant on the daily chart, a triangle-shaped continuation pattern that typically forms after sharp declines and resolves in the direction of the prior trend.

Source: CoinTelegraph