At a Glance
- Ethereum is trading near $2,900, down 1% in 24 hours and more than 10% weekly.
- A bear-flag pattern suggests a potential drop to $1,666 if the price fails to hold $2,906.
- Open interest has risen to 5.255 million while funding rates stay slightly positive at 0.0011.
- Why it matters: Traders are watching a critical support level; a breach could trigger a sharp correction.
Ethereum is currently hovering around $2,900, a level that has sparked concern among technical analysts. The digital asset fell below $3,000 a few days ago and recently tested support near $2,700-$2,800. Despite these movements, the price has yet to regain strength.
Bear Flag Breakdown Raises Risk
Analyst Trader Tardigrade posted a 3-day chart that illustrates a bear flag forming on Ethereum. This pattern is known for a sharp drop followed by further downside. The chart shows the asset breaking below the lower support of the flag.
> “It has 1 day and 19 hours to reclaim above $2,906 to avoid this breakdown,” the analyst wrote. “If the breakdown holds, the target is around $1,666 based on the earlier move.”
The tweet from Trader Tardigrade, posted on January 26, 2026, underscores the urgency. A breach of $2,906 could set the stage for a significant decline.
Open Interest and Funding Trends
Another analyst, Ted, noted that Ethereum is trading flat near $2,900 after a strong sell-off earlier. Open interest has risen to 5.255 million, indicating more positions are being opened even as the price remains sideways.
> “Old degens got liquidated, and now new ones have arrived,” the post added. “The rise in open interest while the price holds steady could mean traders are preparing for the next move.”
Funding rates remain slightly positive at 0.0011, but have decreased, suggesting cooling interest among traders.
ETH/BTC Pair Holds Key Support
Michaël van de Poppe, founder of MNF Fund, shared a chart of ETH against Bitcoin. The ETH/BTC pair is holding a support level that has proven important before. The price sits in a higher-timeframe zone, though it is now below the 21-day moving average.
> “It would be enormously important to be holding this level,” van de Poppe said.
If the support holds, Ethereum could gain against Bitcoin. If not, the chart points to lower levels ahead.
Whale Accumulation Zones
CW pointed out that the current ETH price range matches previous whale accumulation zones. “The current price is an attractive range for Ethereum whales,” they noted. The realized price of large accumulation wallets is close to the current level.
However, data from analyst Ali Martinez shows a steady drop in whale holdings since early January. Ethereum ETFs have also posted losses recently. Price weakness and reduced holdings suggest caution remains across larger accounts.
Key Takeaways
- Ethereum is trading near $2,900 and faces a potential breakdown if it fails to stay above $2,906.
- A bear-flag pattern could push the price toward $1,666.
- Open interest is rising to 5.255 million, while funding rates stay slightly positive.
- The ETH/BTC pair is holding a critical support level; its failure could signal further downside.
- Whale activity is decreasing, adding to a cautious market environment.
Investors and traders should monitor these levels closely, as a breach could trigger a sharp correction in Ethereum’s price.
