Ethereum’s Pivotal Moment: Awaiting the $3,500 Breakout for Bullish Confirmation

As of early 2026, Ethereum (ETH) finds itself at a critical technical juncture, testing the significant resistance level of $3,120. The second-largest cryptocurrency by market capitalization is currently trapped in a tight trading range, exhibiting consolidation without clear directional signals for an immediate breakout. This price action is occurring within a broader corrective band that has contained ETH's movement between $2,700 and $3,500. The upper boundary of this range, $3,500, is reinforced by formidable technical barriers, specifically the convergence of the 100-day and 200-day moving averages, which are acting as stiff ceilings and suppressing upward momentum. Market analysts emphasize that a decisive and sustained close above the $3,500 threshold is the crucial catalyst needed to confirm a resumption of bullish momentum. Such a breakout would signal a potential end to the current correction phase and could open the path for a new leg higher, significantly mitigating the near-term downside risks. Conversely, the failure to breach this key resistance zone could prolong the consolidation or lead to a retest of lower support levels within the established band. The current sentiment, while cautiously optimistic, remains contingent on this technical outcome. The market's focus is squarely on whether Ethereum can muster the buying pressure required to overcome this dual resistance from both a psychological price point and major long-term moving averages, a move that would likely reinvigorate bullish confidence across the digital asset sector.

Ethereum Tests Key Resistance at $3,120 Amid Bullish Sentiment

Ethereum hovered NEAR the $3,120 resistance level, trapped in a tight trading range without clear breakout signals. The asset's movement remained confined within a broader correctional band of $2,700 to $3,500, with the 100-day and 200-day moving averages acting as stiff ceilings near $3,500.

A decisive close above $3,500 is needed to confirm bullish momentum and mitigate downside risks, according to market analysts. Failure to breach this level could see ethereum retreat toward mid-range support at $2,700. Technical indicators show modest improvement but lack conviction for a full trend reversal.

At press time, ETH changed hands at $3,110, posting a 6.3% weekly gain despite a 0.21% daily dip. Trading volumes contracted sharply, falling 46.41% to $12.82 billion. Analyst More crypto Online noted that maintaining above $3,049 is critical for sustaining upward momentum.

Crypto Phishing Losses Plunge 83% in 2025, but Wallet Threats Persist

Cryptocurrency phishing attacks saw a dramatic 83% reduction in financial losses during 2025, with total damages dropping to $83.85 million from $494 million the previous year. The number of victims also declined by 68%, reflecting improved security measures and reduced exposure across the ecosystem.

Market trends continue to influence phishing activity, with spikes in losses coinciding with periods of high trading volume and Ethereum rallies. The largest single attack in September netted $6.5 million using Permit signatures, demonstrating that sophisticated threats remain despite the overall decline.

Wallet drainers persist as a significant vulnerability, particularly on EVM-compatible chains. As Scam Sniffer's report indicates, bull markets create fertile ground for attackers by increasing user participation and potential targets.

ETH Nears $3,300 as Institutional Holdings Tighten Supply

Ethereum's supply crunch intensifies as strategic reserves and ETF holdings lock up 10.74% of total ETH—approximately $40.4 billion at current prices. The transition to proof-of-stake and token burning mechanisms further constrict circulation, creating conditions for price appreciation driven by long-term allocation rather than speculation.

Analysts note ETH has consolidated for over forty days near key support levels. Crypto Bully observes this extended basing period—coupled with diminished selling pressure—often precedes strong directional moves. A decisive break above $3,300 could confirm bullish momentum, while holding the Q1 low of $2,600 remains critical for market structure.

Ethereum Shatters Records with 2.2M Daily Transactions as Tokenization Gains Momentum

Ethereum closed 2025 with a historic surge, processing 2.23 million transactions on December 29—a record underscoring its growing utility beyond speculation. The network maintained blistering momentum, exceeding 2 million daily transactions for four consecutive days, signaling sustained demand rather than a one-off spike.

Analysts like Tom Lee point to asset tokenization as the catalyst, predicting ETH could reach $62,000 as blockchain-based finance matures. The consistency of these volumes suggests Ethereum is becoming the backbone for institutional-grade financial infrastructure, with daily activity now rivaling traditional payment networks.