Ethereum Price Battles Key Resistance at $3,140
Ethereum (ETH), one of the leading cryptocurrencies, is currently facing a crucial moment in its price trajectory. Following a stable recovery that began mid-December, Ethereum’s price has pulled back, leaving investors questioning its next move. With a resistance level hovering around $3,140, the price now sits at a decision point that could define whether ETH continues its climb or faces a deeper pullback.
Market Overview
In recent weeks, Ethereum has been trading within a symmetrical triangle, a pattern known for its consolidation of lower highs and higher lows. This structure highlights the ongoing tug-of-war between buyers and sellers, with neither side in control. The sideways movement reflects market hesitancy, even as Ethereum’s price rose by 5% earlier this week before facing a 4% decline over the last 24 hours.
Bearish Divergence Signals Weak Momentum
A significant factor contributing to Ethereum’s stalled breakout is a hidden bearish divergence between its price and the Relative Strength Index (RSI). Between December 10 and January 6, Ethereum’s price formed a lower high, while RSI—a measure of momentum strength—showed a higher high. This divergence typically signals weakening buying pressure, which was evident when ETH failed to break resistance at $3,140.
On-Chain Data Reveals Short-Term Trends
According to HODL waves, short-term holders have played a key role in Ethereum’s recent volatility. Wallets holding ETH for one day to one week reduced their supply share as the price approached $3,140 resistance. This selling activity, followed by quick dip-buying, has created a churn effect, adding pressure during rallies and dampening momentum.
In contrast, longer-term holders, particularly Ethereum whales, have provided stability. Since January 7, this group has absorbed approximately 200,000 ETH—worth around $620 million—preventing drastic price declines.
The Importance of $3,140 as the Deciding Level
Ethereum’s current battle revolves around its cost-basis cluster between $3,146 and $3,164. This zone represents over 3.1 million ETH and serves as a key support and resistance area. A daily close above $3,140 could reignite buying interest and pave the way for another test of the upper triangle boundary near $3,300. On the downside, a sustained break below $3,080 could lead to a deeper correction toward the $2,800 support range.
How to Prepare for Market Moves
For investors looking to monitor Ethereum’s next steps, staying informed on market data and on-chain metrics is crucial. Additionally, consider using resources like Ledger Nano S (a secure cryptocurrency hardware wallet) to safeguard your holdings during periods of market volatility.
Conclusion
Ethereum’s price activity reflects a market in flux. While short-term sellers introduce volatility, long-term holders continue to provide stability. For now, the $3,140 level remains the critical line in the sand that will determine Ethereum’s near-term direction. Investors should watch key levels closely as the tug-of-war between buyers and sellers unfolds.
