Ethereum traded around $3,093 on the 4-hour chart after a sharp decline from a peak of $3,403 as sellers regained control and pushed the price below key trend signals. Although it retreated after a strong rally, recent moves suggest short-term momentum has shifted into correction mode.
In addition to weakening price structure, traders are also keeping an eye on leverage and spot flow trends, suggesting market positioning remains cautious. the result, Ethereum We are currently at a key decision point where the bulls need to defend the nearby support level and reclaim the overhead resistance to resume an upward continuation.
Ethereum face a zone of intense resistance
Ethereum It remains capped below $3,163, which coincides with the 0.618 Fibonacci level and represents the first upside hurdle. Additionally, a tighter resistance zone exists between $3,227 and $3,233, where the moving averages and the supertrend sell signal converge. This cluster acts as a ceiling; Ethereum A clean four-hour payback is needed to shift momentum back in the buyer’s favor.
Furthermore, the $3,268 level marked by the 0.786 Fibonacci zone adds another barrier after the previous rejection. An even stronger breakout of all three resistance zones may be needed to rally towards $3,403.
Ethereum Price dynamics (Source: Trading View)
Downside levels are becoming increasingly important Ethereum The price is hovering around the important midpoint Fibonacci support at $3,088. Therefore, this level serves as an immediate line that may determine the next swing. if Ethereum Below $3,088, the next downside target is near $3,014, followed by deeper support at $2,922.
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It is significant that $2,922 stands out as a bounce zone based on past reactions. If selling pressure increases, the overall structure will be fixed at the lower end of the range at $2,773.
Take advantage of cool while spot flow remains weak
Source: Coin Glass
Ethereum futures open interest has been on a clear build-and-reset cycle over the past year, rising sharply during the rally and then unwinding. However, it is still up at approximately $40.31 billion as of January 20, 2026, indicating that traders still have significant exposure.
Source: Coin Glass
Spot flow data has been bearish in recent months due to repeated net outflows and limited follow-through on inflows. Furthermore, recent net outflows of nearly $60 million suggest that buyers remain unconvinced during the pullback.
Bitmine Staking adds new on-chain signals
Tom Lee (@fundstrat)’s #Bitmine bet another $86,848Ethereum($277.5 million) 5 hours ago.
In total, #Bitmine has currently staked $1,771,936Ethereum($5.66B) https://t.co/P684j5Yil8 pic.twitter.com/fNoIuERqKt
— Lookonchain (@lookonchain) January 20, 2026
Lookonchain reported that Bitmine linked to Tom Lee’s Fundstrat staked an additional $86,848 Ethereum Worth approximately $277.5 million. Moreover, the total stake balance on Bitmine reached 1,771,936. Ethereumworth nearly $5.66 billion. In this activity, we will add a new on-chain headline as follows: Ethereum Testing major support, traders will be watching for the next directional break.
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Technical outlook for Ethereum price
Ethereum trades in a correction phase after a strong rally, so the key levels are still clearly defined.
Upside levels include the first hurdle at $3,163, followed by a resistance cluster between $3,227 and $3,233. A break above this zone could pave the way to $3,268, with $3,403 being the primary swing high target.
On the downside, $3,088 acts as immediate support. This level of loss could result in the next major demand zone being $3,014 and then $2,922. The broader structure remains supported near $2,773.
The technical image suggests that Ethereum After losing momentum, it has consolidated and the price is compressed between Fibonacci support and moving average resistance. This setting is often done prior to volatility expansion.
Will Ethereum go up?
Ethereum’s near-term direction depends on whether buyers can recover $3,163 and hold above the $3,233 cluster. A strong follow-through could revive the bullish momentum towards $3,403.
However, if the price fails to protect at $3,088, there is a risk of further downside moves towards $3,014 and $2,922. For now, Ethereum remains at a critical inflection point, and confirmation, not anticipation, will drive the next move.
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