After plummeting earlier this week, Ethereum (ETH) has stabilized above the $3,000 level as large holders increased their exposure during the selloff. This recovery follows a volatile period in which ETH briefly fell below a key technical level, triggering a liquidation and sparking renewed alarm across the broader crypto market.
On January 22, Ethereum was trading at around $3,003, up about 1.3% in 24 hours. This rally comes after ETH fell nearly 13% from January 19th to 21st, reaching the $2,900 area for the first time in four weeks.
This decline coincided with increased macro uncertainty, ETF outflows, and the liquidation of over $480 million in bullish leverage positions.
ETH's price trends to the downside on the daily chart. Source: ETHUSD on Tradingview
Ethereum accumulation contrasts with cautious positioning
On-chain data shows that large Ethereum holders have aggressively accumulated assets during the recent economic downturn. Whale’s balance increased by approximately 290,000 ETH in two days. This represents a purchase worth nearly $360 million at current prices.
The move suggests that some long-term investors view the recent pullback as a buying opportunity. However, other indicators are showing more caution among experienced traders.
The smart money index remains below the signal line, which it has previously crossed before the start of a stronger bull market. In previous instances, such confirmation preceded double-digit profits, but so far no such signs have appeared.
Derivatives data supports this wait-and-see approach. ETH perpetual futures funding rates briefly turned negative, indicating a decline in confidence among leveraged traders. The options market is also showing increased demand for downside protection after repeated rejections around $3,400 over the past two months.
Technical structure highlighting narrow trading range
From a technical perspective, Ethereum trades within a symmetrical triangle on the daily chart.
The momentum indicators are showing a bullish divergence, with the relative strength index forming higher lows, while prices recorded lower lows from November to mid-January. This pattern suggests that selling pressure may be easing, although confirmation is still lacking.
A notable level for the immediate rally is $3,050, a former support zone that ETH lost during its recent decline. A sustained daily closing price above this level would indicate short-term stabilization.
Above that, the range from $3,146 to $3,164 represents a zone of high supply density, with approximately 3.4 million ETH accumulated. This region is expected to act as a strong resistance force.
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On the downside, failure to maintain the bottom of the triangle near $2,910 could open the door to a deeper move towards the $2,610 support area.
Tradingview ChatGPT, ETHUSD chart cover image
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