At a Glance
- Ethereum hovers near $2,900 after a daily drop of over 3%.
- A diamond pattern on the 1-hour chart suggests a rebound toward $3,600.
- Large holders added 20,000 ETH (≈$59 million) in a quiet accumulation.
Why it matters: A breakout could lift ETH above the critical $3,000 support, sparking a longer-term rally.
Ethereum is trading around $2,900 after a daily decline of more than 3%. Over the past week, the price has fallen nearly 12%, with sellers pushing it below the key $3,000 level.
Market Overview
The current price action places ETH under the 9-week exponential moving average, which sits near $3,150. This positioning indicates that the short-term trend remains under pressure. To regain momentum, the asset must reclaim the EMA line.
The Relative Strength Index is at 43, below the 50 threshold, and has dropped under its signal line. While no divergence is visible at this stage, the RSI is approaching levels that have previously aligned with short-term price floors.
Chart Patterns
A chart shared by analyst Bryant shows a diamond pattern forming on Ethereum’s 1-hour chart. This structure emerged after a clear downtrend, with the price now moving within a narrow range between $2,900 and $2,985. The shape of the pattern, often linked to reversals, has drawn attention as the asset continues to compress.
Notably, the diamond sits inside a demand zone where past buying interest has surfaced. If ETH breaks out above the top edge of the pattern, the next possible move could push it toward $3,600. Bryant noted that this is the first time he has identified this structure, urging caution in interpretation.
On the monthly chart, Ethereum is forming a broader structure that spans several years. Analyst Trader Tardigrade pointed to a completed double bottom pattern, with ETH recently pushing above the neckline. The setup reflects a recovery that started after the lows of 2022 and may support a longer-term move higher if momentum builds.
An inverse head-and-shoulders pattern has also developed within the second bottom of the larger structure. This includes the classic left shoulder, head, and right shoulder layout. Both patterns are widely watched in markets as potential signals of trend reversals.
> “This is super bullish to #Ethereum” – Trader Tardigrade, January 23, 2026
Accumulation Activity
Large holders have been increasing their exposure to ETH through OTC channels. One whale address recently added over 20,000 ETH, worth around $59 million. While this activity has not yet moved the market significantly, it adds to a broader trend of quiet accumulation.
As News Of Los Angeles reported, on-chain data shows that the realized price of coins held in accumulation wallets is now close to the current market valuation. This suggests that while price action appears weak, stronger hands continue to position in the background.
Key Takeaways
- Ethereum is trading near $2,900 after a sharp daily drop.
- A diamond pattern on the 1-hour chart hints at a potential rise to $3,600.
- The asset remains below the 9-week EMA ($3,150), indicating short-term trend pressure.
- The RSI sits at 43, below 50, with no current divergence.
- Whale activity added 20,000 ETH (≈$59 million) in a quiet accumulation.
The combination of chart patterns, on-chain accumulation, and key technical levels paints a cautiously optimistic picture for ETH. A breakout above the diamond’s top edge could trigger a move toward $3,600, while a failure to reclaim the 9-week EMA may prolong the current consolidation.
