Ethereum price found support near $1,905 and recovered some losses. ETH is now consolidating and faces key hurdles near $1,980.

• Ethereum is attempting a fresh recovery wave above $1,950.
• The price is trading below $1,980 and the 100-hourly Simple Moving Average.
• There is a bearish trend line forming with resistance at $1,985 on the hourly chart of ETH/USD (data feed via Kraken).
• The pair could start a fresh decline if it stays below the $2,000 zone.

Ethereum Price Dips Further

Ethereum price failed to stay above $1,950 and started a fresh decline, like Bitcoin. ETH price traded below the $1,935 and $1,920 levels to enter a bearish zone.

Finally, the bulls appeared near $1,900. A low was formed at $1,905, and the price started a recovery wave. There was a move above the $1,945 resistance. The price tested the 38.2% Fib retracement level of the downward move from the $2,038 swing high to the $1,905 low.

Ethereum price is now trading below $1,970 and the 100-hourly Simple Moving Average. If the bulls remain in action above $1,920, the price could attempt another increase. Immediate resistance is seen near the $1,970 level and the 50% Fib retracement level of the downward move from the $2,038 swing high to the $1,905 low.

The first key resistance is near the $1,985 level. There is also a bearish trend line forming with resistance at $1,985 on the hourly chart of ETH/USD. The next major resistance is near the $2,000 level. A clear move above the $2,000 resistance might send the price toward the $2,050 resistance. An upside break above the $2,050 region might call for more gains in the coming days. In the stated case, Ether could rise toward the $2,120 resistance zone or even $2,150 in the near term.

Another Decline In ETH?

If Ethereum fails to clear the $1,985 resistance, it could start a fresh decline. Initial support on the downside is near the $1,935 level. The first major support sits near the $1,905 zone.

A clear move below the $1,905 support might push the price toward the $1,880 support. Any more losses might send the price toward the $1,840 region. The main support could be $1,820.

Technical Indicators

Hourly MACD – The MACD for ETH/USD is losing momentum in the bullish zone.

Hourly RSI – The RSI for ETH/USD is now above the 50 zone.

Major Support Level – $1,905

Major Resistance Level – $1,985

As Ethereum (ETH) kicks off the year with a recovery past the critical $3,000 threshold amid a broader cryptocurrency market rally in early 2026, it continues to struggle against a key resistance level at $3,400. Currently, the second-largest cryptocurrency is entering a consolidation phase below this significant mark.

Technical analyst Ali Martinez has suggested that should the buying momentum observed in recent weeks persist, Ethereum could soon embark on a new rally that might bring it closer to reaching all-time high levels. 

Ethereum Poised For Potential Price Breakout

In a recent update shared on social media platform X (formerly Twitter), Martinez pointed to on-chain indicators suggesting a fresh bullish sentiment among Ethereum investors. Notably, daily active addresses on the Ethereum network have surged, doubling to exceed 800,000 in just two weeks.

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Martinez’s analysis further hints at a potential correlation with the rising demand for Ethereum exchange-traded funds (ETFs). Since December 29, these investment vehicles have accumulated approximately 158,545 ETH, a sum valued at around $520 million, adding to the positive outlook for the altcoin. 

This heightened on-chain activity has created substantial support levels for Ethereum’s price action looking ahead, particularly between $2,772 and $3,109 that could prevent a new drop below these key marks. 

Martinez believes that if these support levels remain intact and buying pressure continues, a breakout above the crucial $3,400 resistance could pave the way for a significant rally toward $4,000—representing an increase of approximately 24.33% from its current trading level of around $3,217.

What Lies Ahead For The Altcoin?

Other analysts, such as those from BitBull, share an optimistic view of ETH’s price trajectory. The analyst has identified a potential inverse head and shoulders pattern forming in the 10-day chart, which could lead to a bullish price target of $5,000. This projection implies a remarkable 55.48% increase, exceeding last year’s record highs.

However, despite these bullish forecasts, Ethereum’s price has fallen by 3% within a 24-hour period, according to CoinGecko data. The cryptocurrency has yet to demonstrate the bullish momentum necessary to meet these targets.

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Another encouraging factor for investors looking for upward price movement is liquidity. Market expert Ted Pillows recently noted that, following Ethereum’s latest price drop, the maximum pain point appears to lean upward. 

Historically, large investors and institutions have tended to “hunt” liquidity levels, which helps to reset positioning in the market and evacuate numerous retail investors. 

With approximately $3.4 billion in short positions at risk if Ethereum successfully breaches the $3,400 mark in the days ahead, the possibility of a significant price movement looms. 

Featured image from DALL-E, chart from TradingView.com