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.

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.

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.

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. 

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.

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.

Over the years, Ethereum staking has become one of the most vital and successful aspects of the broader ETH ecosystem, with big companies steadily jumping into the field. The majority of these companies, especially Bitmine Immersion, are revolutionizing ETH staking, turning it into a massive financial sector and edge.

Bitmine Monetized Ethereum Staking At Scale

After the entry of institutional investors, Ethereum staking has been transformed into a significant business opportunity from a technical requirement. At the forefront of this evolution is Bitmine Immersion Technologies Inc. (BMNR), a leading digital asset platform dedicated to improving the ETH ecosystem.

With its remarkable involvement in ETH staking, Bitmine Immersion is proving just how large this opportunity can be. The digital asset platform has successfully transformed Ethereum staking into a multi-billion-dollar enterprise by growing its validator operations and staking infrastructure.

As outlined by Milk Road on the social media platform X, the company intends to increase its present investment of 1.83 million ETH, valued at approximately $6 billion at current rates, to 4.2 million ETH. Bitmine’s plan and robust participation in ETH staking are a clear sign of the growing institutional appetite for on-chain yield.

This expansion demonstrates how staking is now about creating profitable, long-lasting businesses around ETH’s proof-of-stake economy rather than just protecting the network. Over the past month, Bitmine has been responsible for almost half of all new ETH entering the staking queue. 

Milk Road stated that staking at this scale removes Ethereum from the liquid supply and locks it away in long-term infrastructure rather than short-term trading. When a single player expresses a willingness to commit billions of dollars’ worth of ETH to staking, it points to an increased confidence in ETH’s future economics.

According to the expert, structural pressure is created by a reduced liquid supply and ongoing network demand over time. Given the sustained growth in institutional staking, Milk Road is confident that ETH’s price will move higher in the foreseeable future.

ETH Powering Crypto Native Financial Rails

With crypto native financial rails expanding, Ethereum is increasingly being positioned as the core infrastructure for major financial firms. JP Morgan asset management firm has confirmed this narrative with its latest fund launched on the ETH network.

Milk Road has reported that JP Morgan has introduced a tokenized money market fund on ETH, which is now live and already holds over $100 million in US treasuries. The rails are native to cryptocurrency, and the product appears to be traditional finance.

In reality, there is no separation, and there is only a financial product operating on the trains that make the most sense. Interestingly, this is how institutions move into new systems. “Incrementally, and only after the rules are clear enough to deploy real capital. Once they are live, they don’t leave,” Milk Road stated.

An inactive Ethereum whale has just re-entered the trading scene, withdrawing over $15 million worth of ETH in just a single day. Considering Ethereum’s slow price growth over the past few months and the whale’s sudden appearance despite being dormant for months, there could be a possibility of insider trading.

Dormant Ethereum Whale Moves $15 Million ETH

A sudden $15.14 million Ethereum transaction has caught the crypto market’s attention, with the move either driven by insider knowledge or simple strategic positioning. According to data from blockchain analytics platform, Onchain Lens, the transfer shifted approximately 5,099 ETH from a dormant wallet address on Kraken into active circulation on Thursday, January 22. 

Based on on-chain records, the whale, identified by the address ‘0x761F2F,’ has remained inactive in the market for more than three months. The last few times the whale was actively moving in the market were when it executed a series of stablecoin and HYPE transactions. The anonymous whale had initiated multiple million-dollar trades in UETH, USDT, and USDC. Meanwhile, the HYPE transactions were primarily token burns. 

After withdrawing 5,099 ETH from Kraken, Arkham Intelligence reported that the whale had transferred the ETH to Lido Finance, converting it into 5,100 STETH. While there is currently no evidence of insider trading, the timing of the transaction raises questions, especially given Ethereum’s muted price action over the past few months and the mounting selling pressure from large scale holders. 

Typically, insider trading in crypto occurs when individuals with non-public information make large transactions ahead of major market events that could influence market price. Currently, there has been no spike in Ethereum’s price, nor any major news that could suddenly affect its movements. In fact, ETH continues to trade lower, down by roughly 1.7% over the past 24 hours. Its daily trading volume is also down by 34.89%, signaling reduced confidence among traders and investors. 

Whales Go Long On Ethereum

While dormant large-scale players are suddenly re-entering the market, some active whales remain bullish on Ethereum’s long-term prospects despite its ongoing downtrend. According to well-known market analyst Max Crypto, an anonymous whale has just opened a $202 million long position in ETH with 15x leverage. 

The scale of the trade is extraordinary considering Ethereum’s recent volatility. It shows strong confidence in the cryptocurrency’s future price action and its potential to overcome its ongoing downtrend. Notably, the position has a liquidation price of $2,495, meaning that if ETH falls to that level, the trade could be forcibly closed by the crypto exchange, resulting in substantial losses for the whale. 

Market participants are closely watching the whales’ positioning, with some calling it a brave but chaotic bet. Others have even speculated that the position may have been taken based on insider information, fueling discussions about potential market moves and a possible bullish turnaround for ETH.

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. 

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. 

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 (ETH) has stabilized above the $3,000 mark after a sharp sell-off earlier this week, as large holders increased their exposure during the dip. The recovery follows a volatile period in which ETH briefly fell below key technical levels, triggering liquidations and renewed caution across the broader crypto market.

On January 22, Ethereum was trading around $3,003, up roughly 1.3% over 24 hours. The rebound came after ETH dropped nearly 13% between January 19 and 21, touching the $2,900 area for the first time in four weeks.

That decline coincided with heightened macro uncertainty, ETF outflows, and the liquidation of over $480 million in bullish leveraged positions.

Ethereum Accumulation Contrasts With Cautious Positioning

On-chain data shows that large Ethereum holders accumulated aggressively during the recent downturn. Whale balances increased by roughly 290,000 ETH over a two-day period, representing purchases worth close to $360 million at current prices.

This behavior suggests that some long-term investors view the recent pullback as a buying opportunity. However, other indicators point to a more cautious stance among experienced traders.

The smart money index remains below its signal line, a level that has historically been crossed ahead of stronger upside moves. In previous instances, such confirmations preceded double-digit gains, but no such signal has emerged so far.

Derivatives data support this wait-and-see approach. ETH perpetual futures funding rates briefly turned negative, indicating reduced confidence among leveraged traders. Options markets have also shown increased demand for downside protection after repeated rejections near the $3,400 level over the past two months.

Technical Structure Highlights Tight Trading Range

From a technical perspective, Ethereum is trading within a symmetrical triangle on the daily chart.

Momentum indicators show a bullish divergence, the relative strength index has formed higher lows while the price made lower lows between November and mid-January. This pattern suggests that selling pressure may be weakening, though confirmation is still lacking.

The immediate level to watch on the upside is $3,050, a former support zone that ETH lost during the recent sell-off. A sustained daily close above this level would indicate short-term stabilization.

Above that, the $3,146–$3,164 range represents a dense supply zone, where approximately 3.4 million ETH have been accumulated. This area is expected to act as a strong resistance.

Related Reading: Bitcoin Took Top Spot In 2025 Crypto Payments, Litecoin Third-Most Used: CoinGate

On the downside, failure to hold the triangle’s lower boundary near $2,910 could open the door to a deeper move toward the $2,610 support area.

Cover image from ChatGPT, ETHUSD chart on Tradingview

BlackRock CEO Larry Fink used the World Economic Forum stage to argue that tokenization needs to move from pilot programs to market plumbing and suggested that a shared blockchain standard could cut costs and even “reduce corruption,” a framing that immediately reignited the “which chain?” debate across crypto and specifically inside the Ethereum community.

Fink didn’t name a network. But the combination of BlackRock’s onchain product footprint and its own research positioning makes Ethereum the most natural candidate for the “one common blockchain” he alluded to, even if he kept it implicit.

Fink’s remarks, delivered in the language of infrastructure rather than crypto evangelism, leaned heavily on the operational case for digitized assets and interoperable settlement rails.

“I think the movement towards tokenization, decimalization is necessary. It’s ironic that we see two emerging countries leading the world in the tokenization and digitization of their currency, that’s Brazil and India. I think we need to move very rapidly to doing that.”

He then pushed the argument beyond payments and into capital markets: “We would be reducing fees, we would do more democratization by reducing more fees if we had all investments on a tokenized platform that can move from a tokenized money market fund to equities and bonds and back and forth.”

The most provocative line was his call for standardization and the trade-off he implied comes with it. “[If] we have one common blockchain, we could reduce corruption. So I would argue that, yes, we have more dependencies on maybe one blockchain, which we could all talk about, but that being said, the activities are probably processed and more secure than ever before.”

BlackRock CEO Larry Fink told the World Economic Forum he thinks the movement toward tokenization and digitization is necessary. We need to move very rapidly to doing that. With one common blockchain, we can reduce corruption.

The “one common blockchain” Larry Fink referenced… https://t.co/sMMcg4oyN1 pic.twitter.com/VhRvuwCx00

— Ethereum Daily (@ETH_Daily) January 22, 2026

Why Ethereum Is Coming Up

In the abstract, “one common blockchain” could be read as a generic appeal for shared rails. In practice, BlackRock’s public-market crypto lineup and its tokenization work have concentrated around Bitcoin and Ethereum.

On the ETF side, BlackRock’s flagship US spot products track bitcoin and ether — iShares Bitcoin Trust (IBIT) and iShares Ethereum Trust (ETHA) — with ETHA launching in 2024 and now sitting in the center of the firm’s public-facing Ethereum exposure.

On the tokenization side, BlackRock’s first tokenized fund, the BlackRock USD Institutional Digital Liquidity Fund (BUIDL), debuted on Ethereum via Securitize in March 2024, making Ethereum the original issuance network for what has become one of the market’s most closely watched institutional RWAs.

While BUIDL has expanded across multiple networks over time, the key point for Fink’s “common blockchain” framing is that Ethereum has been BlackRock’s default starting point for public-chain issuance, a meaningful signal in a market where “standards” tend to follow whoever already has the deepest liquidity, the broadest integration surface, and the most conservative counterparties.

The stronger tell came this week from BlackRock research rather than Davos soundbites. In its 2026 thematic outlook, BlackRock explicitly floats the idea of Ethereum as the infrastructure layer that collects the “toll” as tokenization scales. One slide asks: “Could Ethereum represent the ‘toll road’ to tokenization?” and adds that stablecoin adoption may be an early proxy for tokenization “in action,” with “blockchains like Ethereum” positioned to benefit.

In the same section, BlackRock cites RWA data “as of 1/5/2026” and notes that “of tokenized assets 65%+ are on Ethereum,” underscoring the network’s lead in today’s tokenized-asset stack.

At press time, ETH traded at $3,005.

Ethereum has slipped below the $3,000 level again as selling pressure returns across the broader crypto market, keeping bulls on the defensive after a brief recovery attempt. The move back under this psychological zone suggests that traders remain cautious, with downside volatility re-emerging as risk appetite fades and liquidity thins near key support levels.

However, while price action looks heavy in the short term, on-chain data is flashing a different signal beneath the surface. According to Arab Chain, Ethereum reserves held across centralized exchanges have dropped to around 16.2 million ETH, marking their lowest level since 2016. That milestone matters because it highlights a steady, long-duration trend of withdrawals rather than a sudden one-off event.

In practical terms, fewer coins sitting on exchanges typically means less immediate supply available for spot selling, especially during periods of market stress. This behavior can reflect a shift away from short-term trading and toward longer-term holding, self-custody, or deployment in DeFi.

Ethereum remains vulnerable as price struggles below $3,000. Still, the persistent reserve decline suggests that supply conditions may be tightening in the background, setting the stage for a sharper reaction if demand returns.

Binance Reserves Keep Falling

The CryptoQuant analysis also points to a similar reserve drawdown on Binance, reinforcing the broader exchange supply contraction narrative. Since the beginning of 2026, Binance’s Ethereum reserves have dropped from roughly 4.168 million ETH to around 4.0 million ETH, signaling steady withdrawals even as the price remains under pressure. This matters because Binance is often the main liquidity hub for ETH spot and derivatives, so shifts in its reserve balance can reflect real changes in market positioning.

What stands out is that this decline is happening without a meaningful rebound in inflows. In other words, ETH is not rotating back onto exchanges aggressively, suggesting sellers are not rushing to increase liquid supply at current levels. That dynamic typically aligns with a market where investors prefer holding behavior over active distribution. Either moving ETH to cold storage or deploying it across DeFi.

While reserves falling does not guarantee an immediate rally, it can change the supply-demand equation over time. With fewer coins sitting on exchanges, the market becomes more reactive if demand returns suddenly, as there is less readily available ETH to absorb buy pressure.

If Ethereum manages to reclaim key resistance levels, this supply tightening could amplify upside follow-through.

Ethereum Loses $3,000 as Bears Regain Control

Ethereum is showing renewed weakness after failing to hold above the key $3,000 level, with price now hovering near $2,970 on the daily chart. After briefly stabilizing earlier this month, ETH attempted a rebound toward the $3,300–$3,400 supply zone. But momentum faded quickly as sellers stepped back in and pushed the market lower.

From a technical perspective, Ethereum remains trapped below its major moving averages, reinforcing the bearish structure. The recent rejection near the descending trend of the 200-day average signals that upside attempts are still being capped by overhead resistance. Keeping bulls on the defensive. At the same time, the breakdown below $3,000 shifts market sentiment back into risk-off mode. Especially as crypto traders remain sensitive to broader macro uncertainty.

The current price action also reflects a fragile recovery attempt rather than a confirmed reversal. ETH’s latest drop places focus on the $2,850–$2,900 region as the next support area. An area where buyers previously stepped in during earlier selloffs. If this zone fails to hold, the market could revisit deeper levels from the previous correction phase.

For bulls to regain control, Ethereum must reclaim $3,000 quickly and build stronger demand above that threshold.

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.

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.

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.

As the Ethereum (ETH) price retests a crucial support zone, BitMine revealed it has added another $110 million worth of ETH to its treasury holdings over the past week, approaching an important milestone for the company’s investment strategy.

BitMine’s Ethereum Bet Continues

On Tuesday, BitMine, a Bitcoin and Ethereum Network Company with a focus on accumulating crypto for long-term investment, announced its holdings had reached 4.2 million ETH tokens after acquiring 35,268 ETH, worth roughly $110 million, in the past week.

As a result, the company, which is the largest Ethereum Treasury company in the world and the second-largest global treasury, has crypto and cash holdings totaling $14.5 billion at current prices.

According to the announcement, the company now owns 4,203,036 ETH at $3,211, 193 Bitcoin (BTC), a $22 million stake in Eightco Holdings as part of its “Moonshots” initiative, and unencumbered cash worth $979 million.

After the latest purchase, BitMine now holds 3.48% of ETH’s total supply, and nears its goal to control 5% of the leading altcoin’s 120.7 million supply. Notably, it has achieved nearly 70% if “Alchemy of 5%” target in just six months.

BitMine’s chairman, Thomas “Tom” Lee, stated that “Ethereum’s price ratio to Bitcoin, or ETHBTC, has been steadily climbing since mid-October. In our view, this reflects investors recognizing tokenization and other use cases being developed by Wall Street are being built on Ethereum.”

As of January 19, 2026, BitMine’s total staked ETH stands at 1,838,003, worth $5.9 billion at $3,211 per ETH, an increase of 581,920 ETH in the past week.

ETH Price At Crucial Support Zone

Despite BitMine’s constant bet on the cryptocurrency, Ethereum retraced nearly all its 2026 gains after falling below the $3,000 barrier. On Tuesday, ETH recorded a 6.8% decline in the daily timeframe, dropping from the $3,200 area to a three-week low of $2,980.

The King of altcoins has been trading between the $2,600-$3,350 area since the November pullbacks, reclaiming the upper zone of this range during the start of the year rally. Now, ETH is retesting an important multi-support area that could define the cryptocurrency’s short-term performance.

Analyst World of Charts affirmed that there are two “simple” possibilities for Ethereum. If the price loses the $3,000 area, which serves as the mid-zone of its local range and a key macro support and resistance level, then a retest of the $2,600 lows becomes likely.

On the contrary, if the altcoin holds this zone in the daily timeframe and momentum builds, it could retest the range’s upper boundary resistance again.

Amid the pullback, another pseudonym market observer also pointed out that ETH is currently retesting its 50-day Moving Average (MA), which was reclaimed at the start of the year and currently sits at the $3,089 level.

According to the post, if the 50-day MA holds, a move to the 200-day MA, located around the $3,650 area, could come next. “All eyes [are] on a close above the 50-day MA, which will point to a successful back test,” he added.

As of this writing, ETH is trading at $2,999, a 7% decline in the weekly timeframe.

In the current market structure, the Ethereum price continues to move in a separate direction from its network’s performance and fundamentals. While ETH’s price struggles to initiate a major rally, the network is performing at a remarkable pace, breaking past prior all-time highs in most aspects of the blockchain, such as staking.

More Ethereum Getting Locked Away

Even in the ongoing crypto volatile landscape, the supply dynamics of Ethereum, the second-largest cryptocurrency asset, are undergoing a quiet but meaningful shift. Currently, ETH staking is experiencing exponential growth, leading to a tightening supply as more ETH gets locked away.

Milk Road, a market expert, stated that ETH is becoming intentionally harder to access in the midst of the strong growth in its staking ecosystem. The chart shared by Milk Road shows that ETH staking has now hit a new all-time high, with millions of the altcoin presently scheduled to be locked away.

While more tokens are being locked into validator contracts, an increasing percentage of Ethereum’s total supply is essentially taken out of daily circulation. The supply of ETH taken by staking has never been this high, snatching over 30% of the entire supply in circulation. 

This points to growing confidence in staking as a yield strategy in the long term and a deeper commitment to the security offered by the network. Meanwhile, the Ethereum network is now secured by approximately $120 billion worth of staked ETH.

In addition to being removed from active circulation, Milk Road highlighted that this supply is also taken off crypto exchanges. When staking rises, and supply shrinks, Mlik Road stated that this trend is a positive signal for price appreciation in the long term, reinforcing the expert’s conviction in ETH to move higher. 

A Sharp Rise In ETH’s Network Activity To New Highs

On-chain activity has experienced a similar growth, rising to historical levels. Crypto Tice reported that Ethereum network activity is at an all-time high, highlighting the blockchain’s rising function as the layer of settlement for cryptocurrency and financial operations.

The network growth is observed among new wallet addresses, of which more than 393,000 new wallets were created in a single day, reaching the highest level ever recorded for the 7-day average of daily wallet creation. Such an increase in activity is noteworthy not only for its magnitude but also for its tenacity, occurring despite the continued volatility of the market.

It is worth noting that these types of growth are subtle as they do not show up at the tops, and momentum is gradually picking up again. However, when it does show up, it is accompanied by a quiet spike in adoption beneath the surface; a clear instance of how increasing demands follow an expansion in usage.

At the time of writing, the ETH price was trading at $3,119, demonstrating a nearly 3% decline in the last 24 hours. Its trading volume is also showing bearish performance, dropping by more than 16% over the past day.

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.

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. 

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.

Key takeaways

• ETH is down 3% in the last 24 hours and is now trading above $3,200.
• The bearish performance comes amid renewed trade tensions between the U.S. and the EU.

ETH dips below $3,200 on the U.S.-EU trade tensions

Ether, the second-largest cryptocurrency by market cap, is down 3.4% in the last 24 hours and briefly dropped below the $3,200 level. The coin is now trading at $3,205 after slightly recovering from the dip.

The bearish performance comes amid the ongoing trade tensions between the United States and the European Union. President Donald Trump threatened to escalate tariffs, starting at 10% on February 1 and rising to 25% by June, on imports from eight NATO allies (Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland).

The president added that the tariffs will stay in place until Denmark agrees to sell Greenland to the United States. 

Rachael Lucas, crypto analyst at BTC Markets, stated that,

“The latest U.S.-EU trade war headlines have certainly injected fresh volatility into an already uneasy market … adding a layer of geopolitical uncertainty that markets were in no shape to absorb. But while the headlines are loud, they’re not the fundamental driver of the current pullback in crypto.”

ETH eyes the $3,360 resistance level as the market begins recovery

The ETH/USD 4H chart is bearish and efficient after Ether lost more than 3% of its value in the last 24 hours. The technical indicators remain positive, suggesting that ETH could rally higher in the near term.

The RSI of 52 is above the neutral 50, indicating a fading bullish momentum. The MACD lines remain above the neutral zone, signalling that the buyers remain in control.

If the market recovery continues, ETH could rally towards the first major resistance level at $3,360 over the next few hours or days.

However, if the market correction continues, ETH could retest the January 12 swing low of $3,068.

The post Ethereum price forecast: Ether reclaims $3,200 after slipping to $3,170 appeared first on CoinJournal.

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.

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.

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.

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. 

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.

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.

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. 

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.

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.

The Ethereum Foundation has published a step-by-step plan to let Ethereum’s main chain validate blocks using zkEVM proofs, reducing the need for validators to re-run every computation themselves. The proposal, shared via X on Jan. 15 by Tomasz K. Stańczak, Co-Executive Director at the Ethereum Foundation, lays out the engineering work needed across Ethereum’s execution and consensus clients, plus new proving infrastructure and security processes.

zkEVM on L1 – the planhttps://t.co/KLz7PoH6q9

— Tomasz K. Stańczak (@tkstanczak) January 15, 2026

Ethereum L1 Moves Toward zk Proof-Based Validation

Already in July last year, the Ethereum Foundation announced its “zk-first” approach. Today, Ethereum’s validators typically check a block by re-executing the transactions and comparing results. The plan proposes an alternative: validators could verify a cryptographic proof that the block’s execution was correct.

The document summarizes the intended pipeline in plain terms: an execution client produces a compact “witness” package for a block, a standardized zkEVM program uses that package to generate a proof of correct execution, and consensus clients verify that proof during block validation.

The first milestone is creating an “ExecutionWitness,” a per-block data structure containing the information needed to validate execution without re-running it. The plan calls for a formal witness format in Ethereum’s execution specifications, conformance tests, and a standardized RPC endpoint. It notes that the current debug_executionWitness endpoint is already “being used in production by Optimism’s Kona,” while suggesting a more zk-friendly endpoint may be needed.

A key dependency is adding better tracking of which parts of state a block touches, via Block Level Access Lists (BALs). The document says that as of November 2025, this work was not treated as urgent enough to be backported to earlier forks.

The next milestone is a “zkEVM guest program,” described as stateless validation logic that checks whether a block produces a valid state transition when combined with its witness. The plan emphasizes reproducible builds and compiling to standardized targets so assumptions are explicit and verifiable.

Beyond Ethereum-specific code, the plan aims to standardize the interface between zkVMs and the guest program: common targets, common ways to access precompiles and I/O, and agreed assumptions about how programs are loaded and executed.

On the consensus side, the roadmap calls for changes so consensus clients can accept zk proofs as part of beacon block validation, with accompanying specifications, test vectors, and an internal rollout plan. The document also flags execution payload availability as important, including an approach that could involve “putting the block in blobs.”

The proposal treats proof generation as an operational problem as much as a protocol one. It includes milestones to integrate zkVMs into EF tooling such as Ethproofs and Ere, test GPU setups (including “zkboost”), and track reliability and bottlenecks.

Benchmarking is framed as ongoing work, with explicit goals like measuring witness generation time, proof creation and verification time, and the network impact of proof propagation. Those measurements could feed into future gas repricing proposals for zk-heavy workloads.

Security is also marked as perpetual, with plans for formal specs, monitoring, supply-chain controls like reproducible builds and artifact signing, and a documented trust and threat model. The document proposes a “go/no-go framework” for deciding when proof systems are mature enough for broader use.

One external dependency stands out: ePBS, which the document describes as necessary to give provers more time. Without it, the plan says the prover has “1–2 seconds” to create a proof; with it, “6–9 seconds.” The document adds a two-sentence framing that captures the urgency: “This is not a project that we are working on. However, it is an optimization that we need.” It expects ePBS to be deployed in “Glamsterdam,” targeted for mid-2026.

If these milestones land, Ethereum would be moving toward proof-based validation as a practical option on L1, while the timing and operational complexity of proving remain the gating factors.

At press time, ETH traded at $3,300.

Ethereum has reclaimed the $3,300 level after weeks of choppy and uncertain price action, offering bulls a brief sense of relief. However, upside momentum remains fragile, as buyers continue to struggle against the $3,400 zone, a level that has repeatedly capped recent advances. This area now stands as a clear short-term inflection point, separating a potential recovery phase from what some analysts still describe as a broader bearish structure.

Market participants remain divided. On one side, skeptics argue that the latest rebound resembles a classic relief rally, driven by short covering and temporary sentiment improvement rather than a genuine shift in trend.

From this perspective, Ethereum may still be vulnerable to renewed downside if macro conditions tighten or risk appetite fades. On the other side, more constructive analysts believe the stabilization above $3,300 could mark the early stages of a recovery, with higher levels coming into focus if resistance is convincingly reclaimed.

Adding complexity to the narrative, on-chain developments continue to draw attention. Just a few hours ago, Bitmine staked an additional 154,304 ETH, worth roughly $514 million, signaling sustained confidence from large players despite market uncertainty. As price compresses below resistance, Ethereum now sits at a critical juncture where conviction from both bulls and bears is being tested.

Bitmine’s Growing Staking Footprint Signals Long-Term Conviction

According to data reported by Lookonchain, Bitmine’s Ethereum exposure has reached a notable scale. In total, the firm has now staked approximately 1,685,088 ETH, valued at around $5.62 billion at current prices. This places Bitmine among the largest single staking participants in the Ethereum ecosystem, underscoring the growing role of institutional and quasi-institutional actors in securing the network.

What makes this positioning particularly relevant is Bitmine’s overall balance. The company reportedly holds about 2.133 million ETH in total, meaning that close to 80% of its Ether reserves are actively staked rather than sitting idle. This allocation suggests a long-term, yield-oriented strategy rather than a short-term trading approach. By committing such a large portion of its holdings to staking, Bitmine is effectively signaling confidence in Ethereum’s medium- to long-term outlook, despite ongoing price volatility and macro uncertainty.

From a market perspective, large-scale staking reduces the amount of ETH that is readily liquid and available for sale. While this does not eliminate selling pressure entirely, it can contribute to a tighter circulating supply during periods of demand recovery.

At the same time, concentrated staking activity highlights how network security and yield generation are increasingly influenced by large holders. As Ethereum trades near key resistance levels, Bitmine’s positioning reinforces the narrative that some major players remain structurally committed, even as short-term price direction remains contested.

Ethereum Tests Key Weekly Resistance

Ethereum’s price action on the weekly chart shows a market attempting to stabilize after a volatile multi-year cycle. ETH has reclaimed the $3,300 area and is now trading just below a clearly defined resistance zone near $3,400. This level has repeatedly capped upside during prior rallies, making it a critical area for bulls to reclaim with conviction.

From a trend perspective, Ethereum remains above its long-term moving averages, including the 200-week line, which continues to slope upward. This suggests that despite recent drawdowns, the broader structural uptrend has not been invalidated. However, price is still trading below the previous cycle highs near $4,200–$4,400, highlighting that ETH is in a recovery phase rather than a confirmed breakout.

Momentum has improved compared to late 2025, with higher lows forming after the sharp sell-off toward the $1,600–$1,800 region. Volume during the rebound has been moderate, signaling participation without clear signs of speculative excess. This supports the idea of controlled accumulation rather than euphoric chasing.

Still, the inability to cleanly break above $3,400 keeps downside risk relevant. A rejection here could lead to renewed consolidation toward the $2,800–$3,000 zone. For bullish continuation, ETH needs a sustained weekly close above resistance, which would shift market structure and open the path toward higher liquidity zones above $3,800.

Featured image from ChatGPT, chart from TradingView.com 

Ethereum (ETH) is significantly drawing attention from both institutional investors and everyday users, as on-chain data shows rising participation across staking, treasury accumulation, and wallet creation.

Related Reading: Ethereum New Addresses Hit Record Levels: What’s Driving The Growth?

Similarly, price forecasts remain mixed. While major banks and market analysts see room for further upside, others caution that macro conditions, ETF flows, and technical resistance levels could limit near-term gains.

With ETH trading near the $3,300–$3,400 range in mid-January, the network’s foundation appears stronger than in previous quarters. Yet the question remains whether these developments will translate into a sustained price rally.

Ethereum Staking and Treasury Demand Signal Long-Term Commitment

Ethereum staking has reached a record value of about $118 billion, with roughly 35.8 million ETH locked on the Beacon Chain. This represents close to 30% of the circulating supply, suggesting a growing preference among holders to earn yield rather than sell.

Network participation is also increasing. Active validators now exceed 976,000, while around 2.3 million ETH is queued for future staking. Lido Finance remains the largest staking provider, holding roughly a quarter of all staked ETH.

Corporate treasury activity has added to this trend. BitMine Immersion, one of the largest Ethereum treasury firms, recently staked an additional 154,304 ETH, worth roughly $514 million at current prices. The company’s total ETH holdings now exceed 4 million tokens.

Institutional Forecasts Point to Higher Targets

Several financial institutions have revised their outlook for Ethereum in 2026. Standard Chartered has recently raised its year-end ETH price target to $7,500, up from a previous estimate of $4,000. The bank cited growing demand from corporate treasuries, spot ETH investment products, and expectations for network fee growth.

According to analysts, treasury firms and ETF-related flows have absorbed close to 4% of Ethereum’s circulating supply since mid-2025. Treasury buyers alone reportedly acquired around 2.3 million ETH in just over two months, a pace the bank compares favorably with past Bitcoin accumulation phases.

Standard Chartered also suggested Ethereum could outperform Bitcoin if real-world usage, stablecoin activity, and tokenized asset adoption continue to expand on its network. Longer-term scenarios project costs of up to $25,000 by 2028 and $40,000 by 2030, although these projections rely on optimistic assumptions.

User Growth Rises, But ETH Price Faces Technical Limits

Ethereum’s user base is also expanding. In early January, the network recorded nearly 393,600 new wallet addresses in a single day, with a weekly average of over 327,000 new addresses.

Analysts link this surge to the Fusaka protocol upgrade, which reduced data costs for Layer-2 networks, as well as record stablecoin transfer volumes of roughly $8 trillion in late 2025.

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Despite stronger fundamentals, price action remains cautious. ETH recently tested the $3,400 resistance level, with key hurdles near $3,550 and $3,650 based on long-term moving averages. Support is forming around $3,000, and a failure to hold that level could expose ETH to further downside.

Cover image from ChatGPT, ETHUSD chart from Tradingview

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. 

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. 

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.