A cryptocurrency analyst explained which direction Ethereum may be heading based on a long-term parallel channel formed on the monthly price chart.

Ethereum has been trading in a parallel channel for several years

In the novel one post on X, analyst Ali Martinez talked about the long-term pattern that Ethereum has clearly been following for the last few years. The pattern in question is a “parallel channel” in technical analysis (TA), which forms whenever the price of an asset trades between two parallel trend lines.

The upper level of the parallel channel will likely facilitate upper asset patterns to form, while the lower level may act as a support boundary and allow the price to remain above it.

Parallel channels can be of several different types, depending on the orientation of the lines relative to the chart axis. If the channel has a certain slope, it falls into the Ascending or Descending category. This is naturally the case when the lines point upwards and the other when they point downwards.

In the context of the current topic, the simplest type of parallel channel is relevant: the zero-slope channel. This means a pattern with lines parallel to the time axis. When assets are traded in such a channel, consolidation occurs precisely sideways.

If one of the formation levels is broken, there may be a indefinite continuation of the trend in this direction. This means that an escalate above resistance may be a bullish signal, while a decrease below support may be a bearish signal.

Here is a chart shared by Martinez that shows the parallel channel where Ethereum’s monthly price has been trending for several years:

As shown in the chart above, Ethereum’s recent bear run has seen its 1-month price return to the parallel channel midline located at $2,930.

Martinez noted that if ETH closes below this level in December, a decline to lower levels could occur. The next potential support is at $2,000, which corresponds to the 25% parallel channel level. The cryptocurrency found support around this line in the early months of 2025.

In a scenario where this level also fails, Ethereum can expect a drop to the parallel channel bottom line at $1,090. The resource last tested it again in 2022 and successfully found support.

Now it remains to be seen how ETH will close the month and whether one of the next two pattern levels will come into play.

ETH price

At the time of writing, Ethereum is trading at around $2,860, down more than 15% in the last seven days.