Ethereum’s market displayed a blend of signals, with price action showing signs of weakness, yet the longer-term structure and fundamentals remained positive. Following a drop beneath $3,000 and a loss of approximately 16% of its January 2026 gains, ETH has entered a period of volatile consolidation. Technical patterns suggested a bullish outlook, yet momentum indicators signaled a potential pause. That divergence has traders on high alert, questioning if buyers can uphold the structure or if the downward pressure will intensify. Ethereum has successfully completed a bullish pennant formation on the 1-month time frame.
On January 25th, Ethereum was in the process of completing a bullish pennant on the monthly timeframe. The pattern caught the attention of traders seeking long-term profits. As ETH approaches critical support levels on shorter time frames, expectations for a breakout are rising among traders. A single bullish catalyst was sufficient to ignite the breakout of the bullish pennant. Nonetheless, the MACD’s bearish cross at $2,942 has sparked some caution among analysts. As the price hovered in this pivotal area, the inquiry persisted: would the bullish configuration endure, or would the bearish momentum instigate a correction? Data reveals that whales have been consistently accumulating Ethereum, indicating a strategic move for long-term gains. They demonstrated strong confidence in Ethereum’s future by capitalizing on the $2.6-$3K dip.
Meanwhile, retail investors found themselves entangled in the short-term price fluctuations, gathering around local peaks and contributing to the market’s volatility. The clear divide between the whales’ strategic maneuvers and the retail crowd’s responses illustrated a market caught between long-term thinkers and those swayed by the clamor of short-term volatility. Ethereum’s Total Value Locked hovered around $331 billion, highlighting the network’s robust foundation even amid price fluctuations. Historically, instances where ETH traded beneath ecosystem value have aligned with long-term accumulation zones. Past occurrences have shown robust recoveries following a period of volatility settling down.
Nonetheless, TVL by itself did not ensure instant gains. The market continues to encounter momentum headwinds and an uncertain risk appetite. Traders remained vigilant, monitoring whether dip buying would continue or if losses would deepen. Ethereum’s latest pullback underscores a recurring conflict between short-term momentum and long-term conviction. As whale accumulation and network strength provide structural support, the near-term price trajectory may depend on whether selling pressure genuinely exhausts or continues to linger.