Ethereum (ETH) was trading around $3,200 at the time of reporting, with a slight decline over the past 24 hours, but an 8% gain over the past week.
Meanwhile, trading volume is over $28 billion. The recent move is above the 21-day moving average, and some traders are eyeing the start of a new trend.
Ethereum breaks above the 21-day moving average
ETH has topped several daily candlesticks above the 21-day moving average of the ETH/BTC pair. Michael van de Poppe said:
“The price broke above the 21-day moving average and held as support.”
He suggested this could be the first real uptrend since the summer. ETH remains above 0.035BTC after a long consolidation period. This zone has previously acted as resistance during declines. That level is being treated as support as the price is currently above it. Although the momentum is increasing and the RSI value is rising, it has not yet reached overheating levels.
Additionally, Ethereum has rebounded multiple times from the 0.03-0.0325 BTC support area. This zone has been in place since late 2025. Daan Crypto Trades describes ETH as follows:It is highly compressed against BTC andHe also pointed to the 200-day moving average and the 0.032 level as important indicators if the price declines.
On the ETH/USDT chart, the token has cleared the descending channel. Breakouts occur after several months of lows. Luckey shared a chart, noting that Ethereum has climbed back above $3,200 and entered the previous support area that served as resistance during the downtrend.
$ETH also follows this pattern.
👀✔️ https://t.co/xrPXHoi0kV pic.twitter.com/oUdIEgmMrs
— Lucky (@LLuciano_BTC) January 7, 2026
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Price patterns and short-term levels
ETH recently closed a red daily candlestick for the first time in six sessions. Analyst Ted commented:
“I needed this because I cleared most of Latelong.”
He believes this trend will hold if ETH remains above $3,200. Elsewhere, Krypto Batman mentioned the possibility of a double dip, but the chartnot yet clearA breakout could push the next target to $3,900, which coincides with the 1.618 Fibonacci extension.
On another front, less than 16.5 million ETH is held on exchanges, near the lowest level in years, according to CryptoQuant data. Low foreign exchange reserves suggest little selling pressure in the short term.
At the same time, net inflows into the Spot ETH ETF turned positive. This change shows renewed interest from institutions and adds a new layer of support to Ethereum’s current movement.
