Ethereum (ETH) at the Brink: Why This Support Level Must Hold

2026-01-22 22:41:32

Source: CryptoNewsNet Original Title: Ethereum (ETH) at the Brink: Why This Support Level Must Hold Original Link: Ethereum (ETH) is trading around $3,000, showing a modest gain over the last 24 hours. The price is still within a rising channel that began forming in November 2025.

Despite the recent dip from levels near $3,400, buyers stepped in as ETH touched the lower range of the channel, keeping the broader trend intact.

Key Channel Holds Amid Pullback

The current move follows a bounce from the $2,900–$2,950 zone. This area has provided support multiple times in recent months. The price remains below both the midline of the channel and the 50-day moving average, which sit between $3,060 and $3,100. A break above these levels could open the way toward the top of the channel, which is near $3,600–$3,700.

Alpha Crypto Signal commented on the setup, saying:

“$ETH is holding above the channel support and quickly reacted from the lower boundary, which signals that buyers are still defending this trend aggressively.”

As long as the lower boundary holds, the current pattern remains valid. Another analyst, Batman, described the current area as a critical level for bulls, stating:

“It’s currently nearing its last line of defense… If there’s an area for Ethereum to rebound, this is it.”

ETH/BTC Nearing Key Support Area

Ethereum’s position against Bitcoin has also come into focus. The ETH/BTC pair is resting just above 0.0327 BTC, a level marked as a higher-timeframe support zone. The price action has fallen below the 21-day moving average, which may signal short-term weakness.

Michael van de Poppe, founder of MNF Fund, noted the importance of a recovery, stating:

“$ETH vs. $BTC continues to rest on an important support level here… the momentum needs to come back through reclaiming the 21-Day MA. That’s the most important part.”

Beyond price action, Ethereum’s realized price for accumulation wallets is nearing the current market price. Analyst CW shared, “The realized price of the $ETH accumulation address continues to rise and is approaching the current price. This indicates that accumulation is still ongoing.” According to on-chain trends, the $2,720 range has held up historically as a floor.

Meanwhile, centralized exchange reserves are dropping. CryptoQuant data shows that ETH balances on exchanges have declined to 16.2 million, the lowest since 2016. A certain head-tier exchange saw a reduction from 4.168 million to 4 million ETH since early January. Staking activity has also increased, reducing the liquid supply further.

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