Ethereum’s price has recently stabilized around the $2,680 mark following a significant sell-off that resulted in heavy liquidations of long positions in derivatives markets. Although the cryptocurrency has experienced a brief bounce, its volatility remains high, with bearish sentiment continuing to dominate near-term momentum. Currently, ETH is situated within a crucial support range, making the forthcoming monthly close vital. This close will determine whether this zone can act as a solid base for a rebound or if it signifies the potential for a more significant decline.
The daily chart indicates a shift in the market from the strong upward trend seen in 2025 into a phase of correction and consolidation. After reaching a peak around $4,800, ETH has consistently recorded lower highs and lower lows, reflecting a diminishing bullish control. Presently, the price is testing an essential horizontal demand zone between $2,700 and $2,750, a region that previously demonstrated substantial accumulation. This area, alongside relevant trendlines and volume analysis, is crucial in assessing Ethereum’s near-term trajectory.
Notably, the chart exhibits a breakdown from a rising trendline, signaling a loss of short-term bullish momentum. At this juncture, ETH is positioned just above a pivotal support band around $2,740, while a more significant downside level is identified at approximately $2,370. The On-Balance Volume (OBV) indicator has been trending lower, pointing to a decrease in buying pressure and an inclination towards distribution over accumulation. Persistent rejections near the $3,200 to $3,400 zone further confirm the presence of strong selling pressure overhead. If Ethereum fails to reclaim the broken trendline, the chances of continued downward movement increase.
In summary, Ethereum is in a critical phase that could determine its short-term movements. The alignment of horizontal support, prior consolidation, and a declining OBV suggests a cautious outlook for the near term. A decisive daily close below the $2,700 level would affirm a bearish continuation, while a robust bounce with increased volume could bolster recovery hopes. Until Ethereum manages to reclaim the $3,000 to $3,100 range, any rallies may encounter selling pressure, maintaining a neutral-to-bearish overall trend.
As January concludes, ETH is likely to fluctuate between $2,600 and $2,900, with a bearish outlook if support falters. A drop towards $2,370 might negatively impact trading in February, promoting more conservative strategies. However, if Ethereum can maintain its position above $2,700, there may be opportunities for stabilization and selective buying interest as the new month unfolds.