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Ethereum remains under pressure in a key support zone, teetering between a potential rebound and further decline. While bullish patterns like the cup-and-handle and ascending triangle are shaping up, confirmation is required before any decisive move. Last Defense Zone: $2,274–$2,104 And The Libra Reversal Setup Kamile Uray shared that Ethereum is currently trying to hold above the critical support zone between $2,775 and $2,623. This area has become a key battleground for bulls and bears, with buyers attempting to defend it to prevent further downside. If this support continues to hold, ETH could regain short-term stability and make another attempt to move higher. Related Reading: Ethereum Loses Structure After $3,220 Rejection — Is This Distribution Or Just The First Crack? On the upside, a sustained bounce from this zone could allow Ethereum to revisit the pink box resistance around the $3,445 level. A clean breakout above this resistance would activate bullish structures such as a cup-and-handle or an ascending triangle, signaling growing bullish momentum and opening the path toward the $3,894 level. However, this becomes possible if ETH manages to close above the $3,661 peak, confirming the formation of the first major high. The $3,894 level carries technical significance, as it represents the 0.618 Fibonacci retracement of the most recent downward wave. A decisive close above this level would suggest continuation of the recovery. Failure to hold above it, however, could trigger renewed selling pressure and lead to another corrective move lower. On the downside, if Ethereum loses the $2,623 support, a deeper decline toward the pink box zone between $2,274 and $2,104 would become likely. This area is notable for the potential formation of a bullish Libra pattern. Should reversal confirmation emerge from this zone, ETH could attempt another recovery phase, with the broader objective of retesting its previous highs. Waiting For Confirmation: ETH’s Next Move Depends On Price Action Ethereum is currently following the trajectory outlined by Crypto Candy in a recent update on X. As predicted, the asset dipped into the lower support range between $2,600 and $2,700 and is now attempting to stage a recovery from the zone. Should this upward momentum persist, the immediate objective for bulls is a return to the $3,070 level. Related Reading: Ethereum Poised For $4,000 Breakout? Expert Pinpoints On-Chain Triggers For Potential Rally However, for Ethereum to firmly re-enter bullish territory and shift the broader market structure, it must close decisively above the $3,070 threshold. This level serves as the primary gateway for any sustained recovery beyond the current relief rally. Until that breakout occurs, the prevailing market bias remains firmly bearish, as the failure to reclaim and hold above $3,070 suggests that the path of least resistance is still to the downside, with lower price points remaining the primary expectation for the short term. Featured image from Pexels, chart from Tradingview.com

Recent remarks from BlackRock CEO Larry Fink have pointed toward the need for a single, unified blockchain for tokenized markets, and have intensified the focus on platforms capable of handling institutional-scale liquidity, compliance, and settlement. With its long track record in smart contracts, extensive developer ecosystem, and growing role in regulated financial products, Ethereum is now emerging as the most likely candidate to serve as the settlement layer for tokenized capital markets. Why Asset Managers Prefer Familiar Infrastructure In an X post, the Ethereum Daily shared a video in which BlackRock CEO Larry Fink made it clear that tokenization is necessary. Speaking at the World Economic Forum, Fink said the financial system must move rapidly toward digitization, adding that a single, common blockchain could reduce corruption and improve transparency across the global markets. Related Reading: Ethereum Gains Institutional Support, Though ETH Price Outlook Remains Contested While Fink did not name a specific network, the most plausible candidate could be ETH, based on BlackRock’s own initiatives and public statements that emphasized the role of ETH in asset tokenization. The firm has consistently highlighted ETH as a core platform for its on-chain strategy. Meanwhile, BlackRock launched its BUIDL tokenized money market fund directly on ETH, a product that has already grown to over $2 billion in total value locked. “There’s no second best,” Ethereum Daily noted. In the staking space, Bitmine has turned Ethereum staking into a multi-billion-dollar business. An analyst known as Milk Road has revealed that the company now has 1.83 million ETH staked, worth roughly $6 million at current prices, and plans to scale that figure toward 4.2 million ETH over time. Over the past months, Bitmine Immersion Technologies Inc. (BMNR) has accounted for nearly 50% of all new ETH entering the staking queue. Staking at this scale is important because it removes ETH from the liquid supply and locks it into long-term infrastructure rather than keeping it for short-term trading. When one player is willing to commit billions of dollars worth of ETH to staking, it reflects confidence in ETH’s future economic prospects. A lower liquid supply, combined with sustained network demand, will create structural pressure over time. How Support Built Through Multiple Market Cycles Analyst Milk Road has also highlighted that Ethereum is holding near a critical support zone around $3,000, hovering just above the lower boundary of its long-term rising structure, an area that has acted as a stress test for ETH throughout the cycle. Historically, when ETH drifts into this area, the market will need to decide whether the weakness is temporary or structural. Related Reading: Ethereum Maintains Structural Strength Despite Resistance Near $3,400 The $2,750 level remains the key line because it has repeatedly stopped downside pressure after macro-driven or narrative-driven pullbacks, making it a reliable floor for the broader trend. As long as ETH holds above that level, the broader multi-year uptrend will remain intact. Featured image from iStock, chart from Tradingview.com

Ethereum is currently trading under pressure after failing to push above the $3,000 level again over the past 24 hours, a move that is reflecting trader sentiment across the derivatives markets. ETH is currently trading at $2,925, down 2.7% on the day, after moving within a 24-hour range capped at $3,012.99 and finding lows around $2,909.60, according to price data from CoinGecko.  As price action weakens, a notable change has been developing, with on-chain data showing funding rates drifting toward negative territory and derivative positioning beginning to tilt more defensively. Funding Rates Slide As Shorts Gain Ground Ethereum’s failure to hold above $3,000 is an important psychological break for traders, especially after several failed attempts to hold above that level in January. Price action over the past week shows sellers maintaining control after ETH rejected around $3,360 on January 18, followed by a steady push lower toward the high-$2,900s.  Related Reading: The Ethereum MACD Crossover That Could Lead To A Massive Bull Wave Although the pullback has so far been orderly above $2,900, this decline has come alongside fading momentum across the derivatives market. One of the clearest signals for this can be seen in Ethereum’s OI-weighted funding rate, which has been steadily compressing and is now edging toward negative levels. At the time of writing, Ethereum’s OI-weighted is at 0.0008%, close to breaking into negative territory and far below readings around 0.009%, which it registered earlier in the month. Funding rates turning negative typically indicate that short positions are paying longs, meaning stronger demand for downside exposure. Funding spikes that previously accompanied the price rebound in early January have faded, and the overall trend suggests bearish positioning is slowly gaining the upper hand. Open Interest, Liquidations, And What’s Next Although Ethereum’s price action fell below $3,000, derivatives traders have stayed in the market, keeping total open interest at high levels. Data from CoinGlass shows aggregate Ethereum open interest increasing by 0.68% in the past 24 hours, which shows that many traders are not exiting Ethereum entirely. At the time of writing, the total open interest is sitting at about 13.36 million ETH, equivalent to roughly $39.19 billion. Related Reading: Ethereum’s 4-Hour Chart Says A Big Dump Is Coming, Here’s The Target Looking across major exchanges, Binance has the largest share of ETH open interest, accounting for about $8.95 billion, but it is down by 0.8% in the past 24 hours. CME follows with approximately $5.73 billion in open interest, up by 3.72% in the past 24 hours. Gate comes next at around $4.01 billion, while MEXC comes in close at $3.51 billion worth of ETH open interest. Over the past 24 hours, Ethereum liquidations totaled $64.34 million, with long positions ($52.52 million) accounting for the majority of losses. A hold above $2,900 could allow Ethereum’s funding rates to normalize and open the door for another rebound attempt to $3,000. However, a continued fall in funding rates into negative territory could see bearish control pushing Ethereum below $2,900. Featured image from Pexels, chart from Tradingview.com

As the crypto market faces uncertainty and continues in a consolidation phase, market expert Sam Daodu has issued a report examining the potential for XRP, Ethereum (ETH), and Solana (SOL) to emerge as frontrunners if a new altcoin season arises in 2026.  XRP, ETH, And SOL Price Forecasts Daodu began his analysis by pointing out that Bitcoin’s (BTC) dominance is currently hovering around 59%, alongside an Altcoin Season Index reading of 55. These indicators suggest that 2026 could herald a substantial rotation towards altcoins, mirroring significant shifts experienced during cycles in 2016-2017 and 2020-2021. The expert outlines several bullish scenarios for each. For XRP, he envisions a potential surge past the $6-$8 range if exchange-traded fund (ETF) inflows maintain a monthly average exceeding $400 million and RippleNet continues to expand its influence in global banking.  Related Reading: ‘I’m Very Bullish’: Ripple CEO Forecasts Record Performance For Crypto In 2026 ETH, on the other hand, could see itself climbing toward $12,000-$18,000 if Layer 2 (L2) adoption unlocks broader usage and ETF inflows rebound.  Daodu highlights that active addresses are at cycle highs, indicating organic demand that may translate to higher prices once institutional sentiment shifts positively. For SOL, the outlook is similarly optimistic. Solana might rocket to the range of $500-$800 if its transaction finality of 150 milliseconds and low fees attract a new wave of applications. Additionally, the rise in ETF filings could lead to significant capital inflows. Potential Risks Ahead  In more stable scenarios, Daodu suggests that XRP might consolidate between $2.50-$3.50 if institutional adoption progresses steadily without dramatic catalysts.  He also speculates that Ethereum could trade within the range of $5,000-$9,000, benefiting from consistent demand driven by staking yields and decentralized finance (DeFi) growth. Meanwhile, Solana might trend between $200-$350, assuming that developer growth and retail adoption continue at their current pace without major breakthroughs.  However, Daodu cautions that XRP could fall below $1.50 if demand for ETFs wanes or if regulatory uncertainties arise. Similarly, ETH could fall below $2,500 if scalability issues arise or if regulatory challenges become more pronounced. SOL could drop below $100 if outages persist or if it faces increased competition from other Layer 1 platforms. What AI Models Anticipate AI predictions provide additional insight into the expected performance of these altcoins. For XRP, forecasts vary significantly, with ChatGPT estimating a range of $0.80-$3.00, while Grok presents a more bullish outlook with a target of $1.50-$6.00.  Related Reading: Crypto Boom Ahead? Pantera Capital Pinpoints Major Catalysts For 2026 Success Ethereum’s AI predictions show a range of $3,000-$9,000 from ChatGPT, while Gemini anticipates a high of $7,000-$18,000 through increased tokenization.  Lastly, Solana’s predictions range from $120-$350 from ChatGPT to a more optimistic $300-$800 from Gemini, depending on the growth of consumer applications. XRP was trading at $1.93 at the time of writing, down 2% in the previous 24 hours. ETH traded at roughly $2,952, while SOL traded at $128, both experiencing comparable declines during the same time period.  Featured image from DALL-E, chart from TradingView.com  

Ethereum has taken a sharp turn after facing a firm rejection at the $3,220 level, with price breaking structure and slipping into a weaker posture. The speed of the drop and lack of strong buying interest raise an important question for traders: Is this merely an early warning sign within a broader uptrend, or the start of a deeper distribution phase that could pressure ETH further in the near term? Rejection At $3,220 Signals Distribution, Not A Shakeout Crypto analyst PEPE is Friend highlighted that Ethereum’s sharp rejection at the $3,220 level was deliberate rather than random. The drop was clean, with key structure breaking down, selling pressure accelerating, and price quickly flushing toward the $3,106 area, aligning with a classic distribution behavior rather than a simple shakeout. Related Reading: Ethereum Poised For $4,000 Breakout? Expert Pinpoints On-Chain Triggers For Potential Rally Assessing the current price reaction, there are still no signs of a true reversal. The bounce has been notably weak, trading volume remains thin, and buyers have yet to show a strong commitment. Instead of signaling renewed bullish momentum, the move higher appears to be a technical pullback within a broader weakening structure. The key technical zone remains well-defined. ETH is trading below the former support band between $3,170 and $3,200. As long as the price stays below this range, any upside move is likely to be viewed as a selling opportunity rather than the start of a sustained recovery.  When this price action is viewed alongside Ethereum spot ETF data, the picture becomes clearer. While ETF flows remain positive daily, they lack strong momentum or a standout confirmation day. Capital appears to be absorbed rather than aggressively deployed, suggesting institutional demand is not yet strong enough to drive a decisive breakout. Until that changes, sellers are expected to remain in control below the $3,170–$3,200 resistance zone. Ethereum Slips Below $3,062 As Bears Regain Short-Term Control In an X post, Kamile Uray noted that Ethereum has closed below the $3,062 level, shifting attention toward the next major downside zone at $2,623. This level is now critical, as holding above it could allow ETH to stabilize and attempt another recovery move. Related Reading: Ethereum Maintains Structural Strength Despite Resistance Near $3,400 On the upside, a clean break above the pink-box resistance near $3,445 would activate bullish formations such as a cup-and-handle or an ascending triangle, opening the door for a move toward the $3,894 area. Further strength would be confirmed if ETH manages to close above the $3,661 high, which would mark the first higher high on the daily chart relative to the previous downtrend, improving the bullish outlook. Still, $3,894 remains a key level, as it aligns with the 0.618 Fibonacci retracement of the last decline. On the downside, a clear break below the $2,623 low would expose ETH to deeper losses, with the $2,274–$2,104 zone emerging as the next major support area. This region hosts a potential bullish “Libra” reversal setup, and Ethereum could once again attempt a bounce toward its previous all-time high if reversal confirmation appears there. Featured image from iStock, chart from Tradingview.com

The Ethereum (ETH) 4-hour chart is flashing warning signs as price hovers around a critical support zone. After months of sideways trading, ETH remains trapped in a consolidation, signaling weakening momentum amid uncertain broader market conditions. According to a crypto analyst, ETH’s 4-hour chart suggests that the cryptocurrency could be heading for a major price dump if buyers fail to regain control.  Ethereum Price Chart Signals Major Crash Ahead A new market analysis by crypto expert Tyrex draws attention to a 4-hour chart, warning that ETH may be preparing for another price crash. Tyrex noted that Ethereum recently bottomed inside the purple rectangle on the lower timeframe, where price dipped below a key support around $3,260, briefly triggering a liquidity sweep. The move, however, was quickly reversed, indicating it was a fakeout rather than a true bearish breakdown. Related Reading: The Ethereum MACD Crossover That Could Lead To A Massive Bull Wave Even after the rejection, the analyst revealed that Ethereum’s broader 4-hour pattern remains largely unchanged. He stated that ETH has also repeatedly returned to the same support area, raising concerns that demand may be weakening. Notably, when price keeps revisiting the same lows, it often signals growing pressure, not strength.  On the chart, Ethereum is now consolidating just above the highlighted support zone. Momentum has slowed compared to the earlier impulsive rally, and the price is still struggling to gain upward traction. Instead of continuation, the market appears to be hesitating at a critical area.  According to Tyrex, this hesitation could be a major risk. Repeatedly retesting the same lows makes the market more vulnerable, increasing the likelihood of a deeper price dump. Notably, each retest makes it easier for sellers to break through support as buyers gradually lose control.  The analyst’s chart also outlines a potential path lower if support gives way. A drop beneath the purple zone would put Ethereum at risk of sliding toward the next downside area between $3,209 and $3,221. At the time of Tyrex’s analysis, ETH was trading around $3,312, which means a move to this range would have represented a roughly 3% decline. However, as of writing, Ethereum has dropped to $3,200–which is already below the analyst’s initial breakdown target. This suggests that upward momentum has weakened further, and the recent price drop could signal an even larger decline, according to Tyrex’s analysis.  Analyst Recommends A “Wait And See” Approach While the Ethereum price navigates bearish trends, Tyrex has advised investors and targets to adopt a wait-and-see approach. He indicated that ETH’s outlook is not entirely bearish. According to him, if Ethereum can hold above $3,230, it would shift his bearish bias to a cautiously bullish one.  Related Reading: Ethereum Chart Turns Bullish: New Cycle Energy Points To $5,000 Maintaining that level suggests buyers are defending the range and preventing further downside. In that scenario, ETH could stabilize and potentially climb toward $3,420, as highlighted by the green zone on the chart. Featured image from Pixabay, chart from Tradingview.com

Ethereum continues to show resilience, holding its ground above key support levels even as price faces firm resistance near the $3,400 zone. The ability to sustain strength after recent gains highlights improving market structure, suggesting that buyers remain in control. As long as ETH stays supported above its critical trend levels, the broader upside narrative remains intact despite near-term hesitation. Daily Bull Market Support Band Holds As Key Reversal Zone Luca, in a recent ETH update shared on X, pointed out that Ethereum’s market structure has strengthened considerably over the past several days. The price has been able to hold above the 1D Bull Market Support Band, a level that has acted as a reliable reversal zone multiple times over the last couple of months. This sustained hold suggests improving market confidence and a reduction in immediate downside risk. Related Reading: Ethereum Price Pushes Toward Breakout Levels, Bulls Smell Opportunity Alongside this structural improvement, ETH successfully reclaimed the 0.618 Fibonacci point of interest around the $3,100 region. This level is often viewed as a critical threshold in corrective phases, and holding above it typically signals that buyers are gaining the upper hand.  Despite the positive developments, Ethereum has not moved higher without hesitation. ETH’s price recently faced rejection near the 0.5 Fibonacci level around $3,400, an outcome Luca noted was largely expected. Historically, this area has acted as a significant decision point, often attracting selling pressure and temporary pullbacks before the market decides on its next direction. Looking forward, Luca believes the overall outlook remains constructive as long as ETH continues to trade above the 1D Bull Market Support Band and the 0.618 Fibonacci level. Maintaining these supports would keep the path open for renewed upside attempts, even if short-term consolidations occur, and the analyst’s positioning remains unchanged. ETH Above Daily 200MA, Structure Remains Constructive According to a recent post by Daan Crypto Trades, Ethereum is still advancing gradually while respecting the Daily 200-day moving average against Bitcoin. This type of slow, methodical grind often signals strength beneath the surface, suggesting that buyers remain in control even without aggressive momentum. Related Reading: Ethereum’s Q1 Outlook: Analyst Shares Historical Setup As Price Nears Key Resistance The analyst explained that prolonged consolidations and steady climbs like this typically resolve with an acceleration phase. Should ETH break out with stronger upside momentum, it could serve as a trigger for renewed interest across the altcoin market, helping lift sentiment and price action. However, the structure remains conditional. Holding the Daily 200MA, highlighted in purple, is critical to maintaining this constructive setup. In parallel, Bitcoin must stay above the $94,000 level to maintain the broader low-timeframe bullish structure. As long as these conditions are met, the path of least resistance continues to favor further upside. Featured image from iStock, chart from Tradingview.com

Ethereum finds itself in an unusual position where the fundamentals are strengthening, but capital flows remain hesitant. On-chain activity and the real-world tokenization of assets point to a network that is becoming increasingly useful and more deeply embedded in financial infrastructure. The price action movement shows that ETH is stuck in a range where it is struggling to attract sustained momentum. Why Fundamentals And Price Are Diverging Ethereum is stuck in the middle, with the price hovering around $3,300, which is slightly up from earlier this month, but it remains compressed within the same triangle that has been forming since November. An investor known as Pepeisfriend mentioned on X that this kind of price action usually means pressure is building and a move is coming. However, the direction hasn’t been specified.  Related Reading: Ethereum Outlook Has Improved, And It Could Outperform Bitcoin – Here’s What To Know As a result of this move, big money doesn’t seem very excited. ETH whales have been slowly reducing their exposure since mid-December, with no panic selling, just lightening positions. This kind of behavior signals a lower willingness from large investors to carry risk at these levels. The ETF flows have shown that there have been a few days of positive inflows, but the overall net flows are still negative, showing institutions haven’t truly rotated back into ETH the way they did during the previous hype phase. Meanwhile, Decentralized Finance (DeFi) activity looks weaker, and total value locked (TVL) has dropped noticeably, suggesting that on-chain capital is either leaving or just sitting on the sidelines. When DeFi isn’t active, ETH struggles to generate sustained upside momentum. Related Reading: Ethereum Price Finds Balance at Support—But the Next Move Matters Investor Pepeisfriend concluded that ETH isn’t bearish, but also not inspiring confidence for a breakout. This is a clear “wait for confirmation” phase that must be held, but probably still too early to go all-in or expect an immediate breakout. The Moment That Will Look Obvious In Hindsight While the market is obsessed with layer-1 competition, Ethereum is transitioning from a speculative asset into a yield-bearing, productive asset. Analyst Senior pointed out that on January 15, 2026, Sharplink Gaming deployed $170 million worth of ETH into a combined staking and restaking strategy on Linea. This move shows that institutional treasuries have moved beyond simple accumulation to active yield generation. At the same time, Visa is piloting stablecoin payouts directly on-chain, and EIP-7702 infrastructure is finally going live to eliminate biometric authentication seed phrases via Face ID. The user experience gap that once held ETH back has officially closed. This is the moment ETH is positioning itself as the most secure and liquid on-chain neobank financial platform in the world, and why the $3,500 breakout attempt will feel obvious. Featured image from Pexels, chart from Tradingview.com

Ethereum is showing bullish technical strength, with momentum indicators beginning to tilt back in favor of buyers. After weeks of uneven price action, the ETH/USD chart on the 3-day timeframe is now printing a MACD bullish crossover, a signal that has preceded some of Ethereum’s rallies in the past.  The setup is notable because it proposes a situation where Ethereum is laying the groundwork for another sustained rally that plays throughout the entirety of 2026. Bullish MACD Crossover For Ethereum The latest analysis shared by Javon Marks points to Ethereum climbing steadily following another MACD bullish crossover in December 2025. This bullish crossover is visible on the 3-day chart, where the MACD line crossed above the signal line from below.  Related Reading: Ethereum Chart Turns Bullish: New Cycle Energy Points To $5,000 This is a change that shows downside momentum has faded and bullish pressure is starting to rebuild among Ethereum traders. At the time of writing, Ethereum is trading around the $3,300 region, about 33% below its August 2025 peak, but holding above swing lows in November 2025. According to Javon Marks, this recent price action is potentially the early stages of a much larger bull wave. This projection is based on the fact that the current crossover looks like an earlier crossover that occurred before Ethereum transitioned into an extended upside move in early 2025. Back in April 2025, the 3-day MACD also recorded a bullish crossover after an extended period of consolidation and pullbacks that lasted for a few months. That signal was the start of a multi-month rally that steadily pushed Ethereum higher, eventually culminating in a new all-time high in August 2025. Price action following that April crossover did not explode immediately. Ethereum first stabilized for a few days, then began forming higher lows above $1,500. Once resistance at $2,000 gave way, the rally gained much momentum and carried Ethereum from the mid-$2,000 range all the way above $4,800, broke above its old record of $4,878 that had stood since Nov. 2021, before finally peaking at $4,946 in late August. Price Targets To Look Forward To The final message of this technical analysis is that Ethereum is about to embark on a comparable rally and break out to new all-time highs. According to the updated outlook by Javon Marks, the first major level that defines this potential continuation is $4,811.71. This price acted as an important resistance level during the previous rally in 2025. Related Reading: Ethereum Enters Overbought Levels With Weekend Pump, Why A Crash Could Be Coming A decisive break and sustained hold above $4,811.71 would confirm that Ethereum has exited its corrective phase and re-entered into a broader expansion move. If that breakout unfolds as expected, the measured move projected from the chart points to $8,557.68 as a target to look forward to. This target is based on the magnitude of Ethereum’s last MACD-driven advance and would translate to a 160% increase from current price levels. Featured image from iStock, chart from Tradingview.com

Ethereum is back to trading just above $3,300 per ETH in a slow bullish extension over the past week. After months of wide swings and failed follow-throughs above $3,000, the structure on the monthly timeframe chart is beginning to look bullish in a way that traders should take seriously.  A recent technical breakdown shared by Merlijn The Trader on X shows that Ethereum is approaching a moment where consolidation could give way to forceful expansion, with $5,000 as the most important inflection point. Bullish Pennant Says Bullish Momentum About To Be Unlocked The chart showing the technical analysis from Merlijn shows a bullish pennant forming on Ethereum’s monthly timeframe. This bullish pennant shows that price action has been compressing between a rising support line and a descending resistance line, and this has created a narrowing structure since 2021.  Related Reading: Here’s Why The Bitcoin, Ethereum, And Dogecoin Prices Are Surging Today Ethereum briefly pushed above the upper boundary of this pennant in 2025, rallying to just under the $5,000 mark before momentum faded and corrective moves followed. Since then, price action appears to be gravitating back toward the former resistance line, now acting as a key area of interest. As it stands, Ethereum is now retesting the upper trendline of this bullish pennant for a final upward move. Based on this projection, the first major barrier for Ethereum to break is around $3,300. A clean break above that level would likely open a path toward $3,600, an area that previously acted as a turning point during past rallies. The most consequential zone, however, is around the August 2025 all-time high of $5,000. A break above this zone would unlock bullish momentum based on the bullish pennant and play out in the majority of 2026. How Can This Breakout Play Out? Merlijn’s chart doesn’t stop at the breakout trigger once it breaks above the upper trendline of the pennant. It sketches a full road map for how the move could unfold once Ethereum leaves the pennant. The first step in that projection is a push above $3,600 before a more meaningful test around $5,000. Once Ethereum is able to break above $5,000, then the door is open for new price highs.  Related Reading: Why The Ethereum Price Could Bounce Above $3,500 Soon However, the breakout is expected to come with volatility and retests, not a straight line upward, but still resolves higher if the pennant thesis holds. From $5,000, the projection turns into a two-stage expansion. The first stage shows a force move, where Ethereum goes on a rally to as high as $6,000, then chops through another sharp dip to $4,000 and another recovery sequence before the larger leg higher. The larger leg, higher projected on the chart, points to $8,400 as the final price target zone for Ethereum. Featured image from Getty Images, chart from Tradingview.com

After its recent price breakout, Ethereum (ETH) is facing its next big test and attempting to turn a crucial area into support. Some analysts have suggested that the altcoin is ready to continue its bullish momentum, arguing that the biggest rotation in years is coming. Related Reading: Bitcoin Nears ‘Historic’ Technical Test As Price Eyes $93,500 Barrier – What’s Next? Ethereum Challenges Key Resistance Area On Wednesday, Ethereum broke past a crucial area and retested the $3,400 level for the first time in over a month. The king of altcoins has seen a 6% increase in the daily timeframe, jumping from the $3,100 level to the current levels. Notably, ETH has been hovering between the $3,000-$3,300 area since the start of the year rally, but failed to break the local range’s upper boundary during last week’s attempt. Now, the cryptocurrency has daily closed above this barrier and is testing this area as support. Amid this performance, analyst Michaël van de Poppe affirmed that “it’s ETH season” as the leading altcoin has held above the 21-day Moving Average (MA) since January 1. He explained that this level, officially lost during the early Q4 2025 corrections, is crucial for the price to hold onto to strengthen the momentum. To the market observer, Ethereum is “ready to make new highs and continue the uptrend,” and based on this structure, his main scenario is that the cryptocurrency will likely retest the $3,800 area soon. Meanwhile, Daan Crypto Trades pointed out that ETH is currently facing a “big test.” The trader noted that the altcoin has been moving within its $2,600-$3,300 price range over the past two months, adding that a breakout from this range is necessary to define the direction of its next move. Per the chart, Ethereum must reclaim the $3,350 level, where the 200-day exponential moving average (EMA) is located. This indicator has served as a key rejection area since November, and breaking above it “should lead to a move higher to catch the Daily 200MA next,” currently located around the $3,600 area. ETH To Follow Its 2018 Playbook? Crypto Jelle also shared an optimistic outlook for the cryptocurrency, asserting that Ethereum “looks better than it has looked in years” against both Bitcoin (BTC) and the US Dollar. He argued that both charts are poised to move higher since ETH’s downtrend against BTC is over, and its USD chart looks ready to push towards the $4,000 barrier again. He added that the ETH/BTC anticipated rally means “ETHUSD could see price move a lot higher over the coming months.” Similarly, Alex Wacy recently explained that the “biggest ETH rotation in 8 years [is] forming right now.” The analyst highlighted that the king of altcoins is repeating the same playbook that led to its 2018 breakout against BTC, but with “bigger players” and “more capital entering.” Related Reading: Monero (XMR) Hits New $610 All-Time High – Veteran Trader Shares Silver-Like Setup According to the chart, ETH saw a multi-year accumulation against Bitcoin between 2015 and 2017, leading to its massive expansion in 2018. After an initial breakout, the cryptocurrency re-accumulated for an extended period inside a falling wedge pattern, which resulted in a 50x pump from this structure. This time, Ethereum’s trading pair against BTC moved within a multi-year falling wedge pattern again, which was broken out of in Q4 2025. If history repeats itself, the altcoin could see a new massive surge against the flagship crypto over the coming months. As of this writing, Ethereum is trading at $3,375, a 5% increase in the weekly timeframe. Featured Image from Unsplash.com, Chart from TradingView.com

Ethereum’s outlook has been improving its case. After a prolonged period of underperformance and skepticism, the network is starting to exhibit signs of renewed structural and fundamental strength.  While BTC continues to anchor the market as the primary store of value and digital gold, conditions are emerging that could allow ETH to outperform BTC over the coming period. Why The Ethereum Narrative Is Gaining Strength Ethereum has been seen outperforming Bitcoin. In a recent post on X, Walter Bloomberg revealed that Standard Chartered says that the ETH outlook has improved, and now ETH might outperform BTC, citing rising institutional demand and stronger fundamental positioning across key on-chain sectors.  Related Reading: Altcoin Season In Q1? Bitcoin, Ethereum Breakdown Maps Out Performance While weakness in BTC has weighed on the broader crypto market, ETH has continued to benefit from institutional-driven demand, and its dominance in stablecoins, decentralized finance (DeFi), and real-world assets (RWA) tokenization. Standard Chartered also points to the increased throughput and potential US regulatory clarity that it could provide additional upside. In terms of valuation, the bank forecasts ETH at $7,500 this year and $30,000 by 2029, reflecting the expectations of sustained network growth. The Co-founder of PinkBrains_io, a DeFi Creator Studio, DefiIgnas, has highlighted that Ethereum could outperform Bitcoin this year, and the reason is roadmap execution. While BTC will likely keep facing recurring waves of quantum FUD into 2026, ETH has a clear roadmap to prepare for future cryptographic risks.  Furthermore, ETH is actually scaling. Gas limits on layer 1 keep rising, and zkEVMs will get full production readiness, making ETH cheap and fast enough for high-value transactions, while layer 2s will handle most of the trading and high-frequency activity. Related Reading: Bitcoin And Ethereum Market Structure Points To Crypto Winter – Details These upgrades are incremental, which means there’s no breaking news moment for ETH, but progress is happening fast. Early in the cycle, a lot of Degens loaded up on ETH before the bull run, but many got disillusioned and sold their ETH for BTC. “It would be fun to see the playbook reverse higher,” DefiIgnas noted. A Different Liquidity Cycle Than Previous Bull Markets Crypto liquidity quality witnessed a change in 2025. A technical analyst and show host of Crypto Banter, Kyledoops, reported that Wintermute noted that capital in 2025 stopped rotating broadly across the market. Instead, liquidity is concentrated into Bitcoin, Ethereum, and a small group of large-cap tokens. As a result, the long-anticipated wave of altcoin-wide liquidity never really arrived. Meanwhile, the rise of spot ETFs and crypto treasury vehicles created a new, highly structured inflow channel that funneled flow into the top of the market. These vehicles break the crypto’s oldest playbooks. Price action is no longer driven by broad market expansion. It’s driven by where new liquidity can actually enter. Featured image from iStock, chart from Tradingview.com

Standard Chartered has set a new long-range target of $40,000 for Ethereum (ETH) by end-2030, while cutting its end-2026 forecast sharply, arguing that Ethereum’s relative setup is improving even as Bitcoin-led weakness has weighed on absolute crypto price targets. In a research note, the bank’s digital assets analyst Geoff Kendrick framed 2026 as a potential inflection point for Ethereum versus bitcoin, despite revising down its medium-term ETH-USD path. “We think ETH’s prospects have improved. We therefore expect the cross to gradually return to its 2021 highs,” Kendrick wrote, pointing to a rebound in the ETH/BTC relationship as the core expression of his thesis. Standard Chartered Recasts Ethereum Outlook Standard Chartered now expects ether to end 2026 at $7,500, down from its prior $12,000 estimate, before rising to $15,000 in 2027 (cut from $18,000) and $22,000 in 2028 (cut from $25,000), with $30,000 penciled in for 2029 (raised from $25,000) and $40,000 by end-2030. Related Reading: This Ethereum Triangle Breakout Puts Price Above $24,000, Here’s The Path “I think 2026 will be the year of Ethereum, much like 2021 was,” Kendrick writes. The bank attributes the near-term markdown to Bitcoin’s drag on dollar-denominated crypto performance, with Kendrick noting that weaker BTC action has “weighed on the outlook for digital assets priced in dollars,” forcing lower absolute targets through 2028 even as Ethereum’s relative fundamentals strengthen. Kendrick highlighted a set of Ethereum-specific supports that, in his view, are more likely to show up in relative performance than in immediate spot-price upside. He pointed to continued accumulation by Bitmine Immersion Technologies, which the note described as the largest Ethereum-focused digital asset treasury company, at a time when ETF inflows have “temporarily stalled” and broader corporate treasury buying has cooled. Related Reading: Ethereum Long-Term Cost Basis Holds Firm: Structural Floor Forms Near $2.8K He also cited Ethereum’s centrality to stablecoins, tokenized real-world assets, and DeFi as structural demand drivers, and emphasized execution on plans to increase Ethereum layer-1 throughput by roughly 10x over the next two to three years. “Analysis shows that higher throughput translates into higher market cap,” Kendrick wrote. Regulation was flagged as a further potential tailwind. Kendrick pointed to the US CLARITY Act as a development that could be supportive for the sector and “particularly ETH” if it helps unlock another phase of DeFi activity. The US Senate is due to review the bill on Jan. 15 with possible passage in Q1. For traders, the framework implies that Standard Chartered’s highest-conviction expression is less about pinning an exact ETH-USD level in the next 12 months and more about whether Ethereum can reclaim relative ground versus bitcoin as throughput, stablecoin-heavy activity, and policy clarity compound into 2026 and beyond. At press time, ETH traded at $3,126. Featured image created with DALL.E, chart from TradingView.com

Ethereum is nearing a decisive phase that could unlock a major long-term price expansion. A higher-timeframe analysis shared by a TradingView analyst suggests that, despite current short-term weakness, Ethereum remains structurally positioned for a significant upside move. If the ongoing formation resolves as expected, the projected breakout places Ethereum’s price well above $24,000. Ethereum’s Long-Term Structure Remains Intact From a broader perspective, the analyst emphasizes that Ethereum has not broken its established trend since 2020. Over that period, price action has continued to form higher highs, reinforcing the view that the long-term structure remains valid. Rather than signaling failure, the prolonged consolidation seen over recent years is framed as stabilization within a large and defined range. Related Reading: Analyst Predicts Strongest XRP Price Rally In History Is Coming, Here’s Why This range sits between $1,000 and $3,000, with the $1,000 level identified as a critical psychological and structural support. According to the analysis, Ethereum’s ability to hold above this zone is central to the bullish thesis. Remaining above it allows the asset to continue developing a massive ascending triangle, a formation often associated with strong continuation moves once completed. Within this triangle, the analyst outlines a clear progression of internal price phases. Two major legs of the structure have already formed, and Ethereum is now moving through the final phase needed to complete the setup. This phase has brought short-term bearish signals, but they remain part of the broader structure rather than a structural breakdown. As the price approaches the lower boundary of the triangle, several layers of support converge. These include the rising structural trendline and key moving averages that have historically supported Ethereum’s price. The analyst notes that stabilization and a bounce are likely in this area, provided Ethereum does not break below the triangle’s lower limit. Such a break would invalidate the structure, but current conditions suggest that risk remains contained. Why A Breakout Opens The Door To $24,000 The bullish scenario hinges on confirmation. Once the triangle is fully formed and Ethereum breaks above its upper boundary, the analyst expects a continuation move to follow. Based on the size of the formation and prior market behavior, the projected expansion points to a move of roughly 300% from current levels. When applied to Ethereum’s existing range, that expansion places the primary bullish target above $24,000. This projection is not presented as a short-term price call, but as the potential outcome of a multi-year structure finally resolving upward.  Related Reading: XRP Mirrors Gold’s Trajectory: What A Similar ATH Rally Would Mean Additional context strengthens this outlook. Ethereum continues to benefit from growing institutional participation, and recent data shows record stablecoin transfer volumes exceeding $8 trillion on the network. These developments suggest increasing reliance on Ethereum’s infrastructure, which could support sustained price expansion following a confirmed breakout. Ultimately, the analyst believes Ethereum’s next major move depends on how this consolidation phase concludes. If the structure holds and the breakout is confirmed, the path toward prices above $24,000 becomes a technical continuation rather than an outlier scenario. Featured image created with Dall.E, chart from Tradingview.com

Ethereum continues to trade within a prolonged accumulation phase, signaling that the market may be approaching a pivotal transition. As ETH/BTC firmly defends long-term cycle support, the structure points to quiet strength building beneath the surface, often a precursor to rotation and a decisive next move. Ethereum’s Inverted Monthly Chart Signals Late-Stage Accumulation EGRAG CRYPTO made a post, showing that Ethereum’s inverted monthly chart continues to reflect a familiar cyclical pattern, though with notable evolution. Each market cycle follows a similar rhythm, but as the asset matures, volatility compresses, and price behavior becomes more controlled. Related Reading: Ethereum’s Q1 Outlook: Analyst Shares Historical Setup As Price Nears Key Resistance In the first cycle, Ethereum experienced a brief accumulation phase followed by a sharp and violent drop. The second cycle extended the accumulation period, resulting in a more gradual decline. Meanwhile, in the third and current cycle, accumulation has lasted significantly longer, suggesting that any corrective phase should be comparatively shallow. It is important to note that the chart is inverted, meaning what appears as a drop on this view actually represents a breakout on the standard price chart. In this context, the current structure suggests that accumulation is nearing completion, and the market may be approaching its next decisive move. This setup points to a less explosive move compared to earlier cycles, but more controlled. From a price roadmap perspective, initial resistance is projected between $3,800 and $4,500. A successful flip of that zone into support could open the door toward the $6,000 to $7,500 region. The primary risk scenario remains a deeper retest toward the $1,800 to $2,200 range before a broader upside continuation. Why ETH/BTC Is A Key Market Barometer Right Now In a recent post on ETH/BTC, CyrilXBT emphasized that this remains one of the most important charts to monitor. Ethereum continues to defend the 2018 cycle support, consistently printing higher lows while price action tightens just below key resistance levels. This kind of compression often signals that the market is preparing for a larger move rather than breaking down. Related Reading: Here’s The Ethereum Descending Triangle Structure That Threatens A Crash Below $2,800 Importantly, there is no sign of panic or structural damage. Sellers have failed to force a decisive breakdown, while buyers continue to step in at higher levels, reinforcing the strength of the underlying support. The longer this base holds, the more meaningful the eventual breakout or rotation becomes. At this stage of the cycle, Ethereum does not need to outperform aggressively. Simply holding its relative value is usually enough to signal the early stages of capital rotation. Historically, sustained stability on the ETH/BTC pair tends to precede periods where Ethereum begins to take the lead once momentum fully returns. Featured image from Getty Images, chart from Tradingview.com

The Ethereum staking ecosystem is showing clear signs of tightening as demand for validators continues to rise. Participants now face a multi-week wait to enter the network. This growing staking queue reflects a structural shift in how ETH is being held and deployed less as a liquid supply and more as long-term productive capital. As more ETH becomes locked in validation, the dynamics of supply, yield, and network security are quietly being reshaped. Why Validator Delays Add Friction To Supply Re-Entry The current state of Ethereum staking highlights a growing problem with predictability. Crypto expert Dave has pointed out on X that the ETH staking entry queue is now showing an estimated wait of 25 days and 4 hours to enter. Previously, the wait time was around 7.55 days, which is a more than threefold increase in wait time over a relatively short period. Related Reading: Ethereum Staking Deposits Just Surpassed Withdrawals, Why This Could Send ETH Price Above $4,000 At the same time, the exit queue is reporting a wait time of 14 minutes, which previously sat for 44.25 days, representing a reduction of well over 4,000 times, from weeks to minutes. According to Dave, staking on a blockchain with this level of variance between entry and exit requirements is uncertain. Waiting weeks to enter while exit clears almost instantly makes staking behavior highly state-dependent and unpredictable.  This contract is exactly why the expert prefers staking on Cardano, because there is no entry queue. Also, delegation is reflected on-chain immediately, and stake changes are transparent and deterministic. The only delay is a fixed active stake period of two epochs, which is 10 days before delegation changes take effect.  This consistency is the difference because there are no dynamic queues, no sudden shifts, and no surprises driven by changing network states. If demand to stake on Cardano increases rapidly, it will make absolutely no difference, because predictability matters especially with monetary investments. Why Throughput Without Context Is Meaningless The headline claim of $8 trillion in stablecoin transfers on Ethereum sounds impressive, but it’s a completely meaningless metric. Crypto analyst DBCrypto noted that a single entity can move $1 billion back and forth between two wallets ten times, creating a sudden $10 billion in volume, but generating zero economic activity.   Related Reading: Big Bet On Ethereum: CEO Sees 10X TVL Growth In 2026 This is why banks don’t advertise transfer volume as a growth metric, as volume without context tells nothing about utility or growth. However, crypto continues to elevate these numbers as milestones because big figures pump bags. What’s being measured here is motion and activity, not progress or value. DBCrypto concluded that until the industry stops celebrating vanity metrics, it will continue to confuse noise for signal. Featured image from Freepik, chart from Tradingview.com

While Ethereum (ETH) attempts to turn a crucial level into support, some analysts have shared a bullish outlook for the cryptocurrency, which could send its price above the $4,000 barrier in the first quarter of 2026. Related Reading: Dogecoin Price On The Brink Of A 9,000% Rally To $10? What Historical Performance Shows End-Of-Year Weakness To Ignite Q1 Rally On Monday, Ethereum broke above the $3,200 barrier for the first time in nearly a month, hitting a four-week high of $3,259. The cryptocurrency has seen a 8.3% surge from the crucial $3,000 level since Friday, consolidating above the $3,100 level over the weekend. Now, the King of Altcoins is trying to hold the key resistance level and turn it into support. Amid this performance, some market observers shared a potential setup that could lead to a significant rally during the next three months. In an X post, analyst Niels affirmed that Ethereum’s quarterly close in the red is “not as bearish as it looks.” Notably, the altcoin recorded its worst Q4 in six years after closing the quarter with a negative return of 28.28%, according to CoinGlass data. This marks ETH’s first negative Q4 close since 2022, and its worst end-of-year performance since 2019, when it registered a negative return of 28.9%. Nonetheless, Niels highlighted that this opens the door for an “interesting” setup ahead of the altcoin’s expected seasonality. “History tells an interesting story: every single time ETH has finished Q4 in the red, the next Q1 has closed green,” the analyst explained, asserting that “year-end weakness has usually acted as a reset, not a reversal.” Per the post, the end-of-year leverage flush and sentiment cooling have previously enabled Ethereum to start the new year “from a cleaner base,” which has allowed the altcoin to register quarterly returns of up to 52% in recent years. “If that pattern holds, Q4 wasn’t the warning; it was the setup heading into Q1,” he suggested. Ethereum Prepares For 30% Breakout As the price records an 11% weekly surge, analyst Ted Pillows pointed out that the cryptocurrency is about to face an important zone that has served as resistance for nearly two months. Since the early November pullback, the largest altcoin by market capitalization has been trading between the $2,700-$3,400 price range, experiencing strong resistance around the $3,000 and $3,200 levels. Now that the mid-zone of the range has been momentarily reclaimed, ETH must hold its momentum and turn the upper boundary into support. “A reclaim of this level will pump Ethereum towards the $3,800-$4,000 level,” where the next major resistance is located, Ted explained on Monday morning. On the contrary, a rejection from this resistance zone could send the ETH price toward the $3,000 support, while risking a longer consolidation within its two-month range. Related Reading: Bitcoin Volatility Goes Down: BTC Records ‘Calmest Year In History’ Meanwhile, analyst Ali Martinez discussed the altcoin’s consolidation, pointing to a symmetrical triangle pattern forming on its chart. According to the analyst, Ethereum has been compressing between the pattern’s ascending and descending trendlines since November, awaiting a 30% move. If the price holds its current breakout from the upper boundary, the cryptocurrency could see a rally toward the $4,000 area in the coming weeks, positioning ETH for a retest of the Q3 levels. As of this writing, Ethereum is trading at $3,253, a 3.4% increase in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com

Ethereum is at a pivotal crossroads after a sharp move into the $3,160 resistance zone. A clean breakout could unlock higher upside targets, while failure at this level may trigger a near-term pullback as the market searches for stronger support before its next decisive move. A Push Straight Into The $3,160 Resistance Zone Lennaert Snyder noted in a recent update that Ethereum has pushed directly into a key resistance zone around $3,160. Similar to Bitcoin, ETH saw a typical Sunday pump that carried the price straight into overhead resistance, placing the market at a key decision point. Related Reading: Ethereum Enters Overbought Levels With Weekend Pump, Why A Crash Could Be Coming With Ethereum now trading around the $3,160 level, Snyder explained that a confirmed 4-hour reclaim of the level could open the door for continuation longs. In that scenario, upside targets come in near $3,250, with $3,390 acting as the final objective. However, Snyder also cautioned that Monday sessions often fade or fully retrace Sunday-driven moves. A clear break in market structure could therefore validate short setups early in the week. If such a pullback unfolds, price may revisit lower levels in search of a higher low, potentially setting the stage for a more sustainable, smart-money-driven rally. On the downside, Snyder highlighted that a resistance-turned-support flip near $3,050 could provide an attractive entry, while a deeper sweep toward the $2,880 weak lows may also offer opportunities if demand steps in.  Ethereum Holds A Broader Structural Support On The Weekly Chart According to More Crypto Online, Ethereum is still hovering near a broader structural support zone on the weekly chart. This area continues to provide a foundation where an upside reaction remains possible, even though such a move does not need to unfold immediately. The analyst noted that price could still carve out one additional low early next year before the market reveals a clearer move. Related Reading: Ethereum ETFs Record Over $600M In Outflows — Warning Signal For Traders? The major resistance zone overhead remains the most important reference point in the current structure. How Ethereum behaves as it approaches this region will be decisive in determining which of the larger market scenarios ultimately takes control.  For now, both primary scenarios remain technically valid, and the weekly chart has not yet delivered confirmation of the market committing to a single path, keeping the broader outlook balanced and unresolved. This uncertainty reinforces the need for patience as the structure continues to develop. What will eventually shift probabilities is price action around these key zones. While the chart is not providing clear answers at the moment, it is clearly defining market conditions. These conditions are expected to help reveal Ethereum’s preferred direction in early 2026. Featured image from iStock, chart from Tradingview.com

Moving alongside Bitcoin, the Ethereum price has actually been able to reclaim $3,000, moving up faster than anticipated over the weekend. This resulted in an over 6% daily increase by Sunday, as sentiment began to move toward the positive again. However, this move has not completely erased the bearish expectations surrounding the cryptocurrency, especially as one crypto analyst points out that the digital asset has now actually entered overbought levels. Ethereum In Dangerous Territory In a TradingView post, crypto analyst SignalProvider highlighted that Ethereum has now entered overbought levels, something that is bearish for the price. As explained by the analyst, using the ETheruem -Hour timeframe, the trend is currently bearish as the 7-period RSI shows that the digital asset is now in oversold levels. Related Reading: XRP Price Mirrors 2017 Sideways Accumulation Trend – Here’s What Happened Last Time This comes as the Ethereum price continues to trade above $3,100, which the analyst calls a solid horizontal structure. However, this structure has not held as strongly as expected, leading to weakness in the market. As a result, the crypto analyst explains that this could result in a price decline. If the decline plays out as expected with the overbought levels, then the first target is $3,028, according to the analyst. This could then serve as a support level that could begin the next uptrend. However, there is a possibility that this does not play out soon, as prices entering overbought levels can take time to play out. ETH Price Is Not Entirely Bearish While the entrance into overbought levels remains a bearish signal for the Ethereum price, another analyst has presented a possible bullish path for the cryptocurrency from here. This lies in the ability of bulls to break out completely from the $3,100 level. Related Reading: Dogecoin Price Could Rally To All-Time Highs If It Breaks This Resistance Level As crypto analyst TheSignalyst explains, the lower bound of the channel has been working to serve as support for the Ethereum price above $3,000. If this channel continues to hold, then the bullish trend remains intact. “From a structure point of view, ETH remains bullish, trading cleanly inside a flat rising channel,” the post read. When the breakout is completed, then the price could rise as high as $3,600, which is the top of the current ascending channel. But TheSignalyst explains that until this breakout happens, Ethereum investors should expect more sideways chop as the price continues to build up. Featured image from Dall.E, chart from TradingView.com

Ethereum is showing renewed signs of strength as it begins to stabilize after months of choppy price action. While recent technical improvements suggest momentum is turning in favor of the bulls, key resistance levels remain overhead, which means the recovery seems promising, but not yet fully confirmed. Market Structure Remains Unconvincing Despite The Bounce In a recent market update, crypto analyst Luca expressed a cautious outlook regarding Ethereum’s current market structure. While the price has managed a technical feat by breaking above the 1D Bull Market Support Band, a zone that has historically served as a reliable reversal point over the past several months, Luca remains unconvinced of a broader trend shift.  Related Reading: Ethereum Price Momentum Rolls Over, Bearish Move Warning The primary hurdle for a definitive bullish reversal lies at the 0.618 Fibonacci Point of Interest (POI), currently positioned at $3,120. Luca emphasizes that Ethereum must durably reclaim this level to shift the lower-timeframe sentiment. Until this specific price target is secured as support, the risk of the current move being a fake-out remains high. Drawing parallels to the current state of Bitcoin, Luca suggests that the most prudent approach for investors is to remain defensive, as the market has yet to confirm a breakout above the Fibonacci resistance. This cautious stance is intended to guard against emotional trading during a period of high uncertainty and potential volatility. To manage this risk, Luca is maintaining a cash reserve to hedge spot holdings in case a rejection occurs. A failure to hold current levels would likely trigger a deeper pullback toward the previous high-timeframe resistance range near $2,700 before a more sustainable and durable reversal to the upside unfolds. Ethereum Opens 2026 With A Key Trend Shift According to StockTrader_max, Ethereum has started 2026 on a clearly positive technical footing. ETH has printed its first daily close above the 50-day moving average since October 9, a period that coincided with the liquidation-driven shock that rippled through the broader crypto market. This close marks a meaningful shift in trend behavior after months of trading below key short-term averages. Related Reading: Ethereum Price Presses Resistance, but Can The Recovery Survive? From a bullish perspective, reclaiming the 50-day MA is exactly the kind of confirmation sought for following an extended corrective phase. It signals improving momentum and suggests that buyers are beginning to regain control, potentially laying the groundwork for a more sustained recovery rather than a short-lived bounce. Looking ahead, StockTrader_max highlighted the 200-day moving average around $3,550 as the next major upside objective. As capital starts to rotate back into Ethereum and risk appetite improves, the analyst expects price action to gravitate toward this level in the coming sessions. Featured image from Getty Images, chart from Tradingview.com

Arthur Hayes, co-founder of BitMEX, has captured market attention after executing a high-conviction rotation out of Ethereum and into a select group of decentralized finance tokens. On-chain data, later reinforced by his public remarks, shows a deliberate concentration of capital into specific DeFi protocols he believes are positioned to outperform as liquidity conditions evolve. Ethereum Was Sold, Not Abandoned Blockchain data shows that over a two-week period, Hayes reduced his Ethereum exposure by selling a total of 1,871 ETH, valued at roughly $5.53 million at the time of execution. This was not an isolated transaction, as the ETH sales were followed closely by a series of DeFi purchases, indicating that Ethereum was used as a funding source rather than an asset he was exiting on conviction grounds. Related Reading: Can Dogecoin Price Reach $1 In 2026? Analysts Reveal What To Expect This pattern aligns with Hayes’ broader view of Ethereum’s role in the market. ETH increasingly serves as foundational infrastructure and productive collateral, while much of the incremental return potential has migrated to protocols that sit closer to yield generation and cash-flow activity. Hayes had already signaled this thinking earlier, having trimmed ETH exposure in August, making the recent sales part of a continuing reallocation rather than a sudden reversal. Hayes later reinforced the rationale publicly, stating that his portfolio was rotating out of ETH and into “high-quality DeFi names,” based on the expectation that these assets could outperform in an environment of improving fiat liquidity. The speed and coordination of the trades suggest a clear macro-driven move rather than tactical speculation. The Thesis Behind Pendle, Lido DAO, Ethena, And Ether.fi Purchases Following the ETH sales, Hayes redeployed capital across four DeFi protocols, each targeting a different segment of the Ethereum financial stack. Initial purchases included 961,113 PENDLE worth about $1.75 million, reflecting exposure to yield tokenization and on-chain fixed-income markets. He also acquired 2.3 million LDO valued at roughly $1.29 million, positioning into liquid staking infrastructure that continues to play a central role in Ethereum’s staking economy. Related Reading: What Happens If The Bitcoin Price Closes 2025 In The Red? Analyst Answers Additional allocations went to Ethena and Ether.fi, with Hayes buying 6.05 million ENA for approximately $1.24 million and 491,401 ETHFI worth about $343,000. Minutes later, on-chain trackers reported follow-up purchases, showing Hayes doubling down on two positions. He added an additional 4.86 million ENA valued near $986,000 and 697,851 ETHFI worth roughly $485,000, pushing total DeFi deployment well beyond the original allocation. The structure of these buys matters. Pendle targets yield markets, Lido anchors staking liquidity, Ethena focuses on synthetic dollar mechanics, and Ether.fi captures emerging restaking yield. Together, they form a solid exposure to yield, capital efficiency, and infrastructure-level adoption rather than narrative-driven trades. Hayes’ actions underscore a consistent message: Ethereum remains the base layer, but he sees the strongest risk-adjusted opportunities in the DeFi protocols that actively convert ETH into productive, revenue-linked assets. Featured image created with Dall.E, chart from Tradingview.com

XRP, Bitcoin, and Ethereum are displaying sharply diverging fund flow trends, with XRP emerging as the most accumulated digital asset in the latest CoinShares Digital Asset Fund Flows Weekly Report. With Bitcoin and Ethereum jointly recorded nearly $500 million in outflows, the data illustrates a shift in investor positioning away from the market’s largest assets toward select alternatives amid ongoing volatility. XRP Inflows Highlight Selective Demand Contrasting sharply with the redemptions sweeping through Bitcoin and Ethereum products, XRP has continued to register major inflows. CoinShares data shows XRP-linked investment vehicles attracted $70.2 million in new capital last week, reflecting ongoing interest from investors in these nascent ETF categories. Since their mid-October US launches, XRP has accumulated about $1.07 billion in inflows, a remarkable trajectory given the prevailing outflow environment for larger assets.  Related Reading: XRP Price May Be Bearish Below $2, But On-Chain Data Tells A Different Story This bifurcation in fund flows underscores a selective repositioning among investors. While broad risk assets like Bitcoin and Ethereum grapple with selling pressure, XRP’s performance shows that certain niche products are still attracting interest even in a downtrend. This pattern may be likely due to different expectations about regulations, adoption, or the impact of newly launched ETF products aimed at specific investors. Bit-Heavy Outflows: Bitcoin And Ethereum Under Pressure Despite their dominant roles in the market, Bitcoin and Ethereum endured significant net outflows during the reporting week ended December 29, contributing the lion’s share of the overall outflow figure. According to CoinShares, Bitcoin-linked products recorded approximately $443 million in redemptions, representing nearly the totality of the weekly withdrawal from crypto investment vehicles. Ethereum-focused products also saw $59.5 million exit, adding to a broader pattern of institutional caution toward the largest digital assets. These negative flows have accumulated since the mid-October US ETF launches, with Bitcoin recording roughly $2.8 billion and Ethereum about $1.6 billion in outflows over this period. The concentration of redemptions in the United States, where $460 million left digital asset funds, highlights a prevailing aversion among domestic investors toward reallocating capital into BTC and ETH during periods of price volatility and regulatory uncertainty. Related Reading: Banks Could Start Holding XRP Due To This Simple Change The sustained outflows amid weak sentiment reflect broader investor behavior during market stress. When capital flees established assets, it often signals profit-taking, risk reduction, or shifts into alternative strategies or cash positions, all of which can exert downward price pressure and prolong short-term weakness. For Bitcoin and Ethereum, this trend suggests that even their extensive adoption and liquidity have not insulated them from pullbacks in institutional demand. Overall, the latest fund flow data signals a clear rotation in investor attention. While Bitcoin and Ethereum continue to experience significant outflows, XRP is drawing capital, emphasizing a market environment where targeted assets are increasingly capturing the focus of both institutional and retail participants as 2026 approaches. Featured image created with Dall.E, chart from Tradingview.com

Ethereum’s recent rebound has brought a brief sense of relief, but the bigger challenge still lies ahead. While price is attempting to stabilize after weeks of sideways action, the broader structure suggests this move remains corrective rather than decisive. Until ETH can clear the $3,550 barrier, the bounce looks more like a pause in consolidation than the start of a sustained upside breakout. Sideways Correction Still Dominates Ethereum’s Structure According to More Crypto Online, Ethereum continues to trade within a sideways corrective structure that has been in place since November 21. Price action remains capped below the upper boundary of this corrective trend channel, signaling that the market has yet to show a convincing shift toward a broader bullish phase. Related Reading: Here’s The Ethereum Descending Triangle Structure That Threatens A Crash Below $2,800 At this stage, a break above the corrective channel is the minimum indication that upside momentum may be developing. Even if Ethereum does push higher, caution is still warranted. Any advance from current levels could simply unfold as a yellow B-wave within a larger circle wave 5, or as an extended phase of circle wave 4. Both scenarios imply that upward movement may be corrective in nature rather than the start of a sustained rally. For the more bullish orange scenario to gain real credibility, Ethereum would need to reclaim the $3,550 resistance level decisively. A clean break and hold above this zone would help confirm a stronger breakout structure and reduce the risk that the move is merely a temporary bounce. Until such confirmation appears, the probability of another downside test remains elevated. Overall, the technical structure still favors consolidation or further downside over an immediate bullish continuation, keeping the market in a cautious mode. ETH Mirrors Bitcoin’s Range-Bound Behavior In a more recent update, Crypto Candy noted that Ethereum continues to mirror Bitcoin’s price behavior, remaining locked in a well-defined range between $2,700 and $3,400. ETH’s price has been largely stagnant over the past few sessions, indicating indecision across the broader market as participants await a clearer directional cue. Related Reading: Ethereum Price Targets Break Above $3K, Bulls Smell Opportunity However, ETH recently found support in the $2,600–$2,700 demand zone, where buyers stepped in and sparked a short-term bounce. This reaction has allowed price to start pushing back toward higher levels within the range, suggesting that downside pressure is easing for now. If momentum continues to build, a move toward the upper boundary around $3,400 could regain focus. For the bullish bias to remain valid, the $2,600–$2,700 support area must continue to hold. A clean breakdown below that zone would weaken the current recovery attempt and reopen the door to deeper downside. Featured image from Getty Images, chart from Tradingview.com

Ethereum has been having a hard time over the last few months after hitting a brand new all-time high back in August 2025. The last quarter of the year has been especially brutal, with the cryptocurrency’s price down more than 29% in Q4 2025. Despite this abysmal performance, things have failed to turn around, with technical indicators continuing to point to further decline for the altcoin. The latest of these is the appearance of a descending triangle structure, that carried the promise of further downside. Ethereum Price Is Still Not Bullish As crypto analyst Alpha Trade Scope points out in a TradingView post, the Ethereum price chart is still showing major signs of weakness. For example, the digital asset saw its price crash below a descending trendline, and this has marked the continuation of the downtrend that began three months ago. Related Reading: XRP Supply Dwindles While ETFs Go On A Buying Spree Before 2026 The current price trend has led to the formation of a descending triangle structure, which emerged after the cryptocurrency completed an impulse move. Not only this, the trend of recording lower highs has been evidence of the increased selling pressure on the cryptocurrency. Doing this below the aforementioned descending trendline just lends credence to the fact that the downtrend is not over. There has also been a major shift in the market structure of the Ethereum price. For one, there was a Change of Character (CHoCH), which shows that the Ethereum price is no longer bullish, but is rather more bearish at this point. Resistance has also mounted at the $3,000 level over time, and the price has been trading well below this resistance for a while now. Also, the Ethereum price is caught in a tight range, trading within the Fair Value Gap (FVG) mapped out between $2,930 and $2,960. This shows the rising resistance at this level, that could serve as a rejection in the case of a recovery attempt. How Low Can The ETH Price Go? If the current bearish trend holds and the Ethereum price does get rejected, then the first target for the downside lies at $2,815. This first target serves as the first support for the cryptocurrency and the destination for an initial liquidity sweep as investors sell into the decline. However, it is not the final target. Related Reading: What Does XRP Really Do? Expert Explains What It Is Built For In the case of a further break, then $2,800 is expected to give way, leading to the second major target at $2,748. This target is more of a major demand zone and is more likely to trigger a bounce due to the mounting buying pressure at this point. “The chart presents a classic bearish continuation setup, favoring downside expansion if support breaks with confirmation,” the analyst said. Featured image from Dall.E, chart from TradingView.com

According to Cryptowzrd’s latest technical outlook, Ethereum ended the session with an indecisive close, offering little clarity on immediate direction. With the weekend likely to bring thinner liquidity, patience remains key as the focus shifts to waiting for a cleaner structure and a more reliable scalp opportunity to emerge. Tight Ranges Signal Indecision As Volatility Wanes Cryptowzrd went on to explain that Ethereum’s daily candle closed indecisively, mirroring the lack of clear direction seen across the broader market. ETHBTC also ended the session without conviction, reinforcing the idea that momentum remains muted for now. Related Reading: $6 Billion In Ethereum Options: What This Means For Price The uncertainty extended to the higher timeframes as well, with the weekly candle closing indecisively across most ETF and CME charts. This type of price behavior suggests hesitation among market participants, making it challenging to establish a strong directional bias in the near term. According to the update, healthier price action from ETHBTC will be required before Ethereum can develop a clearer trend. That process may take time, as the pair often leads Ethereum’s relative strength and overall structure. At the time of the post, Ethereum was trading close to the $2,800 support target zone. Holding this area maintains the broader structure, while a stronger bullish push in the future could open the door for a move toward the $3,700 resistance region. For now, the focus shifts to the lower time frame charts over the weekend, where short-term scalp opportunities may emerge. However, expectations remain measured given the indecisive conditions and typically lower liquidity during weekend sessions.  Range-Bound Action Keeps Ethereum Traders On The Sidelines In a conclusive summary, the analyst observed that the intraday chart remains characterized by choppy and sluggish price action. The market is currently confined to a narrow range, lacking the decisive momentum required to establish a clear trend. This period of consolidation suggests a “wait-and-see” approach is necessary as the asset stabilizes between its immediate boundaries. Related Reading: Ethereum Traders Chase Upside With Historic Leverage – Breakout Fuel Or Fragile Setup? Specific price triggers have been identified to determine the next major move. A break below the $2,880 support level would likely signal a shift toward further bearish decline, whereas a move above the $3,060 resistance would open the door for sustained upside and new long opportunities.  Ultimately, the analyst emphasizes the importance of patience, noting that the current market environment requires a more mature chart structure before the next high-probability trade can be executed. Until the price breaks out of this intraday range and develops a more defined pattern, the strategy remains defensive to avoid the risks associated with the current volatility. Featured image from Getty Images, chart from Tradingview.com

Ethereum (ETH) is approaching a pivotal derivatives deadline as billions of dollars in options contracts near expiration, placing the $3,000 price level firmly in focus for traders. While traders are betting on a move higher, Ethereum’s near-term price action remains uncertain. The outcome of this options expiry could help shape ETH’s next big move, either to the upside or down to lower levels—particularly as investors reassess their expectations following November’s volatility and choppy conditions.  The price of Ethereum is currently sitting above $2,900 as a massive options expiration worth roughly $6 billion approaches. This event is expected to play a major role in shaping short-term price action and could influence investor sentiment heading into 2026.  Ethereum Options Set To Expire This Friday Data from the derivatives platform Laevitas show that $6 billion in ETH options will expire on Friday, 26 December, with call positions outnumbering puts by more than 2.2 times. Despite this imbalance, bears still hold the edge unless Ethereum’s price moves decisively above $3,100. Related Reading: Ethereum Exchange Supply Just Crashed To New Lows, Why This Is Bullish For Price Earlier this year, many traders had positioned for Ethereum to surge significantly by year-end. However, those bullish expectations were undermined by a massive November decline, leaving ETH’s current options expiry vulnerable to further downside pressure.  While call options still dominate Open Interest (OI), many of these positions would expire worthless if the Ethereum price fails to recover and push higher. This creates a fragile setup and leaves the market in a delicate position, where overly optimistic bets could quickly unwind if key price levels do not hold. Notably, the $3,100 price level has emerged as a critical pivot ahead of the options expiration set for this Friday. Traders have called this level “max pain,” as it represents the price at which the most options contracts would expire worthless. A close below this zone could give bears control and potentially open the door to further price declines. On the other hand, a clean break above $3,100 could flip momentum rapidly.  Presently, around $3.8 billion in ETH options are expected to expire on Deribit, the world’s largest Bitcoin and Ethereum options exchange. In addition, more than $23.6 billion in Bitcoin options are scheduled to expire on Friday, potentially adding significant volatility to the already fragile market.  Analyst Expect Further Volatility For Ethereum With the massive $6 billion Ethereum options expiry on the horizon, traders appear to be bracing for significant market volatility, as the event could trigger a sharp, decisive move in ETH’s price. Separately, crypto analyst Ted Pillows anticipates further volatility for ETH if its price moves in either of two key directions.  Related Reading: Major Ethereum Metric Just Hit A New All-Time High – Can Price Reclaim $3,000? He says that Ethereum is currently in a no-trading zone; however, volatility could occur if the price reclaims the $3,000 level or retests the $2,700-$2,800 zone. Featured image from Pixabay, chart from Tradingview.com

Coming out of the weekend, the Ethereum price had attempted another recovery alongside Bitcoin, but eventually, the recovery attempt failed again. Taking to TradingView, crypto analyst DomicChaina explains what is happening behind this phenomenon and why the Ethereum price is unlikely to see any meaningful recovery. As it stands, it seems the leading altcoin is more likely to suffer a rejection toward new monthly lows than actually stage a rebound. Technical Factors Drive Ethereum Price Further Down The crypto analyst highlights some technical developments that point to the Ethereum price being stuck in a bearish phase. One of the major ones has to do with both the EMA34 and the EMA89. According to the analyst, the price performance in relation to these two EMAs suggests that the downtrend will continue. Related Reading: Why This Market Analyst Is Advising XRP Investors Not To Sell Their Coins For one, the EMA39 had actually crossed below the EMA84, and at the same time, both of these moving averages have been moving downward. This means that despite recovery efforts, it still puts the Ethereum price in a medium-term downtrend. Chaina adds that this means that the current trend is sideways or a basing process, rather than pointing downward. For there to be any meaningful recovery, the Ethereum price would have to break out of this range. However, as long as it continues to maintain this structure, then the expectation is that the altcoin will continue to decline, moving toward the next major support at $2,500. Resistance Remains Strong In addition to the overall trend pointing downward, there is also the issue of mounting resistance at $3,090, coinciding with the EMA34. So far, this resistance has been the death of multiple recovery attempts, with the latest being stopped in its tracks earlier this week as well. With the EMA89 also pointing downward, it means that the price is likely to decline and then recover from here. Related Reading: Why This Friday Could Be Very Big For The Bitcoin Price The analysis also highlights the declining volume as evidence that capital inflows into the altcoin remain weak. With the holidays, this is not expected to change as investors move away from the market to focus on the celebrations. “This week falls into a holiday period, leading to reduced market liquidity, which makes price movements more sluggish and lacking breakout momentum,” the post read. Recovery candles also remaining very short and brief show a stifling of the recovery attempts so far, and those that could follow. For now, the Ethereum price continues to trend below $3,000, recording a 37% decline from its 2025 all-time highs. Featured image from Dall.E, chart from TradingView.com

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. Related Reading: XRP ETFs Record 25-Day Streak As Price Eyes Key Resistance Level Ethereum Forms Head And Shoulder Pattern Amid the broader market volatility, Ethereum has been attempting to hold the recently reclaimed $2,900 level as support to potentially challenge higher resistance levels in the coming days. 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’s high, falling to the lows again during last week’s market correction. 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. Some analysts have warned that ETH’s 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. Per the chart, the altcoin formed the left shoulder between late November and early December after bouncing from the $2,780 support. Meanwhile, the pattern’s head was formed during the mid-December rebound that led to the $3,400 local high. Now, as price is rejected from the $3,000 area again, the cryptocurrency appears to be forming the right shoulder. This suggests that ETH’s price could drop to the $2,800 area to complete the pattern’s formation. 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. ETH Price In Trouble? Other market observers suggested Ethereum could be in trouble after being rejected from the $3,000 barrier again. Ted Pillows noted that the altcoin tried to reclaim this level but failed, closing Monday around the $2,948 area. To the analyst, If ETH doesn’t reclaim this key barrier soon, it could likely drop 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. Similarly, Sjuul from AltCryptoGems affirmed that Ethereum “is a bit in trouble after that nasty bearish deviation on top of the range.” He highlighted the altcoin’s rejection from the mid-December highs, which sent the price the lower zone of its one-month range. Related Reading: Dogecoin’s 53,000% Surge Shows Renewed Interest, But Why Is DOGE Price Lagging? Based on this, the analyst suggested that investors could expect “the same to happen on the lower band,” which would see the price retest the $2,600-$2,700 area, and drop as low as $2,400, before bouncing toward the range highs again. Nonetheless, Sjuul declared that “bulls need to establish a proper uptrend here because losing $2700 would be a negative sign.” As of this writing, Ethereum is trading at $2,933, a 2.53% decline in the daily timeframe. Featured Image from Unsplash.com, Chart from TradingView.com

A screenshot attributed to Fundstrat Research is stirring debate over whether Tom Lee’s firm is projecting a sharp first-half 2026 correction in crypto markets—despite Lee’s recent public bullishness on Ethereum. Wu Blockchain shared the image via X, describing it as an internal client note titled “2026 Crypto Outlook: Near-Term Headwinds, Second-Half Upside,” timestamped Wednesday, Dec. 17, 2025 at 7:34 p.m. ET. Fundstrat’s Bearish Call Vs. Tom Lee’s Bull Case The document is credited to Sean Farrell, Fundstrat’s head of digital asset strategy, and includes a base-case scenario calling for a “meaningful drawdown in 1H 2026,” with target ranges of bitcoin at $60,000–$65,000, ether at $1,800–$2,000, and solana at $50–$75. The note adds that those levels would represent “attractive opportunities into year-end,” and that if the view is wrong, the preference is still to “play defense” until strength is confirmed. The ETH range is what set the market chatter off. Ether is trading around the $3,000 area, making $1,800 a material downside scenario if taken at face value. Related Reading: Ethereum ETFs Record Over $600M In Outflows — Warning Signal For Traders? The controversy, such as it is, comes from the proximity to Lee’s own messaging. At Binance Blockchain Week, Lee said ethereum at roughly $3,000 looked “severely undervalued,” a stance that reads very differently than a research framework explicitly mapping a potential move to the high-$1,000s. Over the past few weeks, Lee even publicly shared his predictions that ETH could reach $20,000 next year and $62,000 over the next several years. Farrell responded directly on X on Dec. 20, arguing the framing of “internal conflict” misunderstands how Fundstrat operates. The firm, he said, houses several analysts with independent processes, each designed for different client objectives and time horizons. Lee’s work, Farrell wrote, is aimed at large institutions that might allocate 1%–5% to BTC and ETH and is structured around longer-term macro and “secular” trends. Farrell’s research, by contrast, is positioned for investors with heavier crypto exposure—he referenced portfolios with ~20%+ allocations—where active risk management and rebalancing matter more than maintaining a single long-duration thesis through volatility. Related Reading: Ethereum Exchange Outflows Soar To $978M: Sign Of Dip Buying? That distinction is central to interpreting the leaked-style targets. Farrell’s public explanation wasn’t “we are bearish,” but rather “we are cautious in the near term.” He said markets appear priced for “near-perfection” while risks remain elevated—citing government shutdown dynamics, trade volatility, uncertainty around AI capex, and a Federal Reserve chair transition, alongside tight high-yield spreads and low cross-asset volatility. He also highlighted mixed flow conditions. In Farrell’s telling, long-term ETF demand could improve as wirehouses onboard, but near-term pressures persist from “OG selling,” miners, fund redemptions, and even the possibility of an MSCI MicroStrategy delisting—an item that stood out because it suggests the risk lens extends beyond spot crypto into the crypto-equity complex that has become a key liquidity and sentiment barometer. Farrell’s stated base case: “an early-year bounce followed by another 1H drawdown, creating a more attractive opportunity into year-end.If I’m wrong, I’d rather wait for confirmation (trend breaks, flows, momentum, or a clear catalyst). Crypto is reflexive, and for my objective, patience matters in no-man’s land.” The thread ends on a point many readers missed in the initial screenshot-driven outrage cycle: Farrell still expects BTC and ETH to “challenge new ATHs by year-end,” describing a shorter, shallower bear that could compress the traditional four-year cycle narrative. “For those who tuned into the outlook: I still expect BTC and ETH to challenge new ATHs by year-end, effectively ending the traditional four-year cycle with a shorter, shallower bear,” he wrote via X. At press time, Ethereum traded at $3,043. Featured image created with DALL.E, chart from TradingView.com

CryptoQuant has released a new report, highlighting a significant shift in Ethereum’s exchange supply dynamics and institutional behavior. According to the data, the amount of ETH held on crypto exchanges has crashed to unexpected lows. The decline coincides with growing institutional accumulation, a trend often viewed as an early signal of a bullish price outlook. Ethereum Exchange Balances Fall To 2016 Lows Arab Chain, a crypto analyst on CryptoQuant, revealed that Ethereum’s exchange supply ratio across all tracked platforms has declined to approximately 0.137. According to the data referenced in the report, this represents one of the lowest readings observed since 2016.  Related Reading: Ethereum 2-Year Trend Maps Out This Unique Crash Path To Bottom At $2,187 The analyst emphasized that this metric reflects the proportion of total ETH supply currently held on exchanges relative to the overall circulating supply.  Lower levels of this metric reflect a smaller fraction of ETH ready for liquidation on exchanges, which the analyst identifies as an important factor in understanding market liquidity conditions.  Arab Chain also noted that the sustained decline in this ratio indicates a continued outflow of ETH from centralized exchanges to external wallets. This movement suggests that a smaller portion of Ethereum’s supply is readily available for trading. It also signals growing confidence among holders who prefer long-term positioning over short-term speculation.  From a broader market perspective, a shrinking exchange supply is often seen as bullish for prices due to basic supply-and-demand dynamics. When fewer coins are available to sell, even a slight increase in demand can push prices up, as buyers compete for a smaller pool of liquid ETH. Reduced liquidity can also limit the intensity of declines, as large sell orders become harder to execute without moving the market.  In his report, Arab Chain references historical behaviour, illustrated by a chart showing the Ethereum supply ratio for all exchanges. The analyst noted that similar declines in exchange supply have occurred during periods of reaccumulation or in the lead-up to stable price movements following significant market volatility.  Ethereum Supply On Binance Crashes Arab Chain has also shared insights on Ethereum’s supply on Binance. The analyst disclosed that ETH balances on the exchange have been steadily declining over the past few months. As one of the largest crypto exchanges in the world, Binance’s reserve changes often reflect broader market sentiment.  Related Reading: Why Did The Bitcoin, Ethereum, And XRP Prices Crash, And Will It Continue? The CryptoQuant report highlights that the Exchange Supply Ratio on Binance has crashed to 0.0325, a relatively low level compared to previous months. This indicates a steady withdrawal of ETH from the crypto exchange, reducing the amount of tokens available for immediate spot market selling.  Arab Chain suggested that the drop in Ethereum supply on Binance shows that traders are becoming more cautious. Rather than engaging in short-term trades, many appear to be holding ETH off exchanges due to ongoing market volatility and uncertainty. The analyst added that the falling supply, combined with ETH’s price stability, indicates lower selling pressure. It also signals that the market may be entering a new phase of liquidity absorption and repositioning. Featured image from Adobe Stock, chart from Tradingview.com