After being rejected from the $3,000 level, Ethereum (ETH) is trying to hold a key support zone and build a base around this area. Some analysts have suggested that the altcoin must reclaim the crucial resistance soon or risk potential drop to new multi-month lows.<\/p>\n
Amid the broader market volatility, Ethereum has been attempting<\/a> to hold the recently reclaimed $2,900 level as support to potentially challenge higher resistance levels in the coming days.<\/p>\n The cryptocurrency has been trading within the $2,800-$3,400 price range over the past month, hitting a high of $3,447 nearly two weeks ago. Since reaching the local high, ETH has struggled to hold the range\u2019s high, falling to the lows again during last week\u2019s market correction.<\/p>\n Amid this performance, the King of Altcoins is currently registering its worst Q4 performance since 2019, with a negative performance of 28.76%. Moreover, it is also recording a red December so far, trading 1.3% below its monthly opening of $2,991.<\/p>\n Some analysts have warned that ETH\u2019s pain may not be over, as it appears to be forming a pattern that could spell trouble for the cryptocurrency. In a Tuesday X post, Ali Martinez suggested that Ethereum started forming a head and shoulder pattern following the massive corrections that the send most cryptocurrencies to multi-month lows.<\/p>\n Per the chart, the altcoin formed<\/a> the left shoulder between late November and early December after bouncing from the $2,780 support. Meanwhile, the pattern\u2019s head was formed during the mid-December rebound that led to the $3,400 local high.<\/p>\n Now, as price is rejected from the $3,000 area again, the cryptocurrency appears to be forming the right shoulder. This suggests that ETH\u2019s price could drop to the $2,800 area to complete the pattern\u2019s formation.<\/p>\n Martinez noted that if the pattern is completed, it could lead to a 15% potential move toward $2,400, a level not seen since the start of the Q3 breakout.<\/p>\n Other market observers suggested Ethereum could be in trouble after being rejected from the $3,000 barrier again. Ted Pillows noted<\/a> that the altcoin tried to reclaim this level but failed, closing Monday around the $2,948 area.<\/p>\n To the analyst, If ETH doesn\u2019t reclaim this key barrier soon, it could likely drop<\/a> towards the $2,700-$2,800 support zone. On the contrary, a daily close above this level would set the base for a rally toward the $3,300 level.<\/p>\nETH Price In Trouble?<\/h2>\n