Ethereum (ETH) 
$2,804.64After its bottom point at $2,620 at the beginning of November, it quickly recovered and rose over 20 percent, reaching over $3,000 as of December 9. However, technical and on-chain indicators raise serious questions about the permanence of this rise. Critical formations pointed out by experts show that Ethereum is more likely to experience a sharp correction in the coming months.
Inverted Cup-Handle Formation May Push the Price to $1,500
The inverted cup-handle formation, which has recently become evident on the Ethereum chart, is considered a classic bearish structure. This formation usually results in a sharp breakout and large-scale price declines. The round top structure formed after ETH climbed to $4,100 in August and the subsequent decline below the 50-day and 200-day exponential moving averages support this structure.
The “handle” part of the formation looks like a rising channel. However, the fact that the price could not overcome the $ 3,150 resistance despite repeated attempts indicates that buyers have lost power. According to analysts, if the price falls below the channel lower band at $ 2,900, the decline will be confirmed and the target zone of $ 1,500 will come back to the agenda.
This target also aligns with the region operating as a strong support area in early 2024. Therefore, from a technical perspective, the $1,500 level is not only a possibility, but a strong scenario. For the bulls to break the pressure, the price needs to recapture the $3,300–$3,450 range; Otherwise, the risk will continue to be downside.
Massive ETH Inflow to Binance Increases Selling Pressure
The weakness in graphics is not limited to these only. On-chain data also points to developments that strengthen sellers’ hands in the short term. The net inflow of 162,000 ETH to Binance on December 5 was recorded as the highest movement since May 2023. CryptoOnChain analysts emphasize that these entries indicate that large investors are preparing to sell.
Stock market entries of similar size in the past have often resulted in periods of high volatility or sharp price declines. Moreover, ETH is currently trending below the major moving averages. This means that the price may become more fragile if sales start.
Another development in the crypto market in the same period complicates the picture: The new meme coin craze in the Solana ecosystem and increasing network activity have directed investors’ attention away from Ethereum and towards alternative platforms. It is stated that this trend creates indirect pressure on Ethereum.
As a result, despite Ethereum attempts to rise, both technical and on-chain data support the short side. Closes above $3,300 with strong volume are essential for the bulls to regain control. Otherwise, a possible break below $2,900 may trigger panic selling in the market and it would not be surprising if the price falls sharply towards $1,500.
