Ethereum Eyes Bullish Breakout as Price Tests Critical 21-Day Moving Average

Cryptocurrency analyst Michaël van de Poppe has drawn attention to a potentially significant technical development for Ethereum. Based on his assessments, the ETH exchange appears to be on track for a breakout above the 21-day moving average and start of a new bullish trend. His analysis suggests that sustained strength above this pivotal level can fuel large amounts of buying volume and lead Ethereum to outperform bitcoin as well as enhance the performance of the overall cryptocurrency markets.

Technical Structure Indicative of Accumulation Phase

The recent price activity of Ethereum shows that the market is undergoing a shift, but the asset itself is consolidating around 3,050 points in early January 2026. Recent technical analysis suggests that ETH is trading within a compression zone which lies just above the daily 200 day moving average, which is considered a crucial long term trend indicator.

Momentum indicators are starting to turn bullish even though the price is not above critical levels of resistance. A bullish MACD histogram indicates that underlying momentum is shifting back toward Ethereum’s favor.

The key resistance levels between $3,177 and $3,325 are being closely monitored by market participants. A convincing move above these levels would probably lead to algorithmic buying and possibly Ethereum hitting the $3,400 to $3,500 range in the next four to six weeks.

Network Fundamentals Remain Strong

Despite the sideways changes in Ethereum’s price over the past week, the metrics on the Ethereum blockchain ecosystem suggest a very optimistic future for the overall health of Ethereum. A recent study has shown that Ethereum’s ecosystem activity reached its highest level in two years, ending in December 2025. A record number of transfers were processed on December 29, 2025, exceeding 1,060,000 transactions.

This spike was in the face of ETH going out of levels of over $4,500 back to about 3,000, indicating a strong sense of engagement in the community. The steady increase in network usage implies that the value proposition of Ethereum as the backbone of decentralized finance has not yet been undermined and this could also pave the way for Ethereum price appreciation.

Even though the economy has been in decline, institutional accumulation has continued. Major holders have been consistently increasing their stakes, indicating strong confidence in Ethereum’s potential for a sustained recovery.

Estimated Projection and Price in 2026

Several factors are lining up that could push Ethereum to higher prices throughout 2026. Network upgrades are expected to make Ethereum more scalable moving forward, thus making Ethereum the bedrock layer infrastructure for Web3 applications. Combined with growing institutional interest through ETF vehicles, these developments provide a good basis for sustained demand.

Analysts predict that if Ethereum can manage to break past the resistance level of $3,325, it can add $3,500 to $3,600 by February 2026, forming an uptrend. The neutral positioning of the Relative Strength Index allows for some room for upwards movement without trading into overbought territory immediately.

The primary validation indicators will focus on daily closes above $3,100 and a decisive break above the resistance level of $3,177 this week. However, failure to hold above the $2,960 support level could slow down the expected recovery.

Conclusion

Ethereum is at a crucial point as it tests important technical levels that could set its course in early 2026. The confluence of improvements in on-chain fundamentals, the institutional accumulation and positive technical patterns appear; the patient investors may be rewarded in the near future. With van de Poppe’s analysis pointing to the potential outperformance against Bitcoin, Ethereum may be setting itself up as one of the major altcoins as a leader for the whole recovery of the altcoin market.