Ethereum (ETH) Reversal Pattern Hints at $3.6K Rally Soon
Ethereum (ETH) is buying and selling round $2,900, following a day by day drop of over 3%. Over the previous week, the worth has misplaced almost 12%, with sellers pushing it under the important thing $3,000 mark.
Despite the short-term weak point, chart patterns and exercise from massive holders have led to renewed curiosity in a potential rebound towards $3,600.
Diamond Formation on Lower Time Frame
A chart shared by analyst Bryant shows a diamond sample forming on Ethereum’s 1-hour chart. This setup has developed after a transparent downtrend, with the worth now transferring inside a slim vary between $2,900 and $2,985. The form of the sample, usually linked to reversals, has drawn consideration because the asset continues to compress.
Notably, the diamond is sitting inside a requirement zone, the place previous shopping for curiosity has proven up. If ETH breaks out above the highest fringe of the sample, the subsequent potential transfer may push it towards $3,600. The analyst famous that it was their first time figuring out this construction, which can name for added warning round interpretation.
On the month-to-month chart, Ethereum is forming a broader construction that spans a number of years. Analyst Trader Tardigrade pointed to a accomplished double backside sample, with ETH not too long ago pushing above the neckline. The setup displays a restoration that began after the lows of 2022 and should help a longer-term transfer greater if momentum builds.
$ETH/month-to-month
Double backside sample on macro with a brewing smaller inverse head and shoulders
This is tremendous bullish to #Ethereum
pic.twitter.com/3748O73Zcb
— Trader Tardigrade (@TATrader_Alan) January 23, 2026
An inverse head-and-shoulders sample has additionally developed inside the second backside of the bigger construction. This contains the basic left shoulder, head, and proper shoulder format. Both patterns are extensively watched in markets as potential alerts of pattern reversals.
Price Action Below Key Trend Level
Currently, ETH is buying and selling underneath the 9-week exponential transferring common, which is close to $3,150. Staying under this degree means that the short-term pattern stays underneath strain. The asset might want to reclaim this line to regain momentum.
The Relative Strength Index is at 43 and stays under 50. It has additionally dropped underneath its sign line, reflecting an absence of shopping for energy. No divergence is seen at this stage, however RSI is approaching ranges which have beforehand aligned with short-term worth flooring.
Steady Accumulation Despite Weak Price
Large holders have been growing their publicity to ETH by OTC channels. One whale deal with not too long ago added over 20,000 ETH, price round $59 million. While this exercise has not but moved the market considerably, it provides to a broader pattern of quiet accumulation.
As CryptoPotato reported, on-chain information reveals that the realized worth of cash held in accumulation wallets is now near the present market valuation. This means that whereas worth motion seems weak, stronger fingers proceed to place within the background.
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