ETH Trendline Collapse Pushes Price Toward $2,815 Zone Despite Strong Valuation Models

Ethereum’s ascending trendline broke sharply, triggering a high-volume sell-off that pushed price near $2,815 and shifted short-term market structure.

Valuation models indicate a fair value around $4,837, showing strong upside potential despite the recent downward pressure on Ethereum’s price.

Market cap fell from $365B to $340B, while supply zones at $3,250–$3,800 continued limiting upward momentum and shaping price action.

Ethereum traded under pressure as new technical and valuation signals pointed to shifting sentiment across multiple timeframes. Recent market structure changes, supply-demand reactions, and a sharp drop in market capitalization shaped the latest outlook.

Trendline Break Shifts Short-Term Structure

A post from ZAYK Charts detailed the decisive break of Ethereum’s ascending trendline. The pair had respected this structure for several days, forming higher lows and maintaining steady momentum

Price began to compress near the trendline before sellers forced a clean breakdown. The move accelerated when a large red candle confirmed strong bearish pressure

This action suggested that stop-loss levels were triggered during the move. After the breakdown, ETH drifted toward the measured move zone, with price hovering near the $2,815 area on reduced strength.

Market participants monitored reactions around this level as no broad recovery attempt appeared on the chart. Instead, the pair continued to show caution as traders reassessed short-term direction.

Valuation Models Point to Wide Pricing Gap

The valuation dashboard showed twelve models assessing Ethereum’s fair value. Nine models leaned toward buy conditions, while two suggested holding and one suggested selling

The combined fair value landed near $4,837, well above the current market price.Some models projected stronger long-term value when considering network activity and staking mechanics

The Discounted Cash Flow model and Metcalfe’s Law metric placed fair value above $9,000. These models emphasized network use and staking rewards during the assessment.Yet the overall model blend pointed to a continued pricing gap as market conditions evolved.

Supply Zones Limit Upside as Market Cap Retreats

$2,900 and $3,000, is where supply continued to restrict momentum with resistance around $3,250 to $3,300 and near $3,600 to $3,800. These zones reacted strongly during previous moves and shaped ongoing market behavior.

Below current levels, demand clusters remained between $2,370 and $2,820. Traders watched these layers as potential points of stabilization. A move below $3,000 increased the chance of continued tests of the lower zones.

Market-cap data from late November showed early volatility followed by brief stability. A sudden drop on 1 December pushed market cap from $365B toward $340B before a slight recovery. This move reflected a rapid loss of momentum during the broader downturn.

The post ETH Trendline Collapse Pushes Price Toward $2,815 Zone Despite Strong Valuation Models appears on Crypto Front News. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.