Ethereum (Ethereum) is trading around $2,900 after a daily decline of more than 3%. Prices have fallen nearly 12% over the past week, with sellers pushing prices below the key $3,000 mark.
Despite the short-term weakness, chart patterns and large holder activity are fueling renewed interest in a possible rebound towards $3,600.
Diamond formation in lower time frames
A chart shared by analyst Bryant shows a diamond pattern forming on Ethereum’s hourly chart. This setup has developed after a clear downward trend, with prices currently hovering within a narrow range between $2,900 and $2,985. As assets continue to be compressed, the shape of the pattern, often associated with reversals, is gaining attention.
Notably, this diamond is within the demand zone where past purchase intent has manifested itself. if Ethereum If it breaks out of the top of the pattern, the next possible move could push it towards $3,600. Analysts noted that this is the first time they have identified this structure and interpretation may require further caution.
On the monthly chart, Ethereum is forming a broader multi-year structure. Analyst Trader Kumamushi pointed out that the double bottom pattern has completed. Ethereum Lately I’ve been pushing my neckline up. This setup reflects the recovery that began after the 2022 lows and could support a longer-term rally if it gains momentum.
$Ethereum/monthly
Double bottom pattern in macro with small reverse head and shoulders
💥 This is super bullish on #Ethereum 🔥 pic.twitter.com/3748O73Zcb— Trader Tardigrade (@TATrader_Alan) January 23, 2026
reverse A head and shoulders pattern also developed internally The second bottom of a large structure. This includes the classic left shoulder, head, right shoulder layout. Both patterns are widely watched in the market as potential signals of a trend reversal.
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Price movement below the main trend level
the current, Ethereum is trading below its nine-week exponential moving average near $3,150. Remaining below this level suggests short-term trends remain under pressure. To regain momentum, the asset must regain this line.
The relative strength index is 43, still below 50. It is also below the signal line, reflecting a lack of buying power. Although there is no visible divergence at this stage, the RSI is approaching levels that previously coincided with the lower bound of short-term prices.
Steady increase despite price slump
Large holders are Ethereum Through OTC channels. One whale recently added over 20,000 addresses Ethereumworth approximately $59 million. This activity has not yet had a significant impact on the market, but it is fueling a broader trend of quiet accumulation.
As reported by CryptoPotato, on-chain data shows that the realized price of coins held in accumulation wallets is approaching the current market valuation. This suggests that even though price movements appear weak, stronger hands continue to sit in the background.
