Ethereum Tests Support as Traders Eyes a Break Above $3,000 Mark

Ethereum (ETH) is currently trading at $2,910 on Tuesday, January 27. It has made a 0.72% gain in the last 24 hours. Over the past seven days, the altcoin has dropped by 6.24%. The trading volume has decreased by 23.37% to $24.56 billion.

Source: CoinMarketCap

Ethereum Holds Key Support Zone

Crypto analyst DamiDefi highlighted that Ethereum has continued to respect its rising trendline between the ranges of $2.8k and $2.85k. Buyers have consistently defended this range in the last few sessions. The level remains the foundation of Ethereum’s short-term structure. 

DamiDefi further stated that the grey resistance zone between the ranges of $3.3k and $3.4k has been capping Ethereum’s price movements. He stated that all movements into this zone have been rejected. A daily close above this zone will confirm the momentum and create a clearer path toward higher targets.

However, analysts noted that if Ethereum loses the rising trendline, the structure will be invalidated. A daily close below this support will suggest that traders will need to focus on the $2.7k region. This region was the previous base of Ethereum. This situation suggests a change in structure, not a correction.

Source: X

If Ethereum manages to break cleanly above resistance, higher targets are still valid. These targets include the $3.6k region and then the $3.8k–$4.0k region.

According to analyst Ted Pillows, Ethereum is trying to gain momentum. However, the analyst emphasized that the momentum would be fragile until the price of ETH is able to break above $3,000 and hold it as support. The first major confirmation point is $3,000.

Source: X

Also Read: Ethereum Transactions Hit All-Time High as Fees Stay Historically Low

ETH Volume Drops as Open Interest Rises

CoinGlass data shows that volume declined by 25.84% to $51.65 billion. At the same time, Open Interest for ETH increased by 3.42% to $38.61 billion. The OI Weighted Funding Rate stood at 0.0066%, showing a slightly positive bias.

Source: CoinGlass

RSI Lags as MACD Confirms Ongoing Weakness

The Relative Strength Index (RSI) currently stands at 40.92. This shows weak momentum. RSI is currently below its signal line, which stands at 48.33. This shows that strength has not yet been fully recovered. A break above the 50 midpoint will be required for improvement.

The Moving Average Convergence Divergence (MACD) line currently stands at -36.8, while the signal line stands at -17.5. The histogram currently stands at -54.3. This is a bearish sign until the MACD line closes the gap with the signal line.

Source: TradingView

ETH is holding its major rising support levels, but the indicators are still weak. The break above $3,000 is the level that traders are monitoring. If the price is unable to hold the support, the market will be focusing on the lower trading zones.

Also Read: Bittensor (TAO) Price Analysis: Risk of Deeper Decline if $214 Support Fails