Ethereum (ETH) Eyes Breakout as Bulls Defend $3.2K Level

Ethereum holds $3,200 after a clean trendline retest, with rising volume, strong on-chain data, and $4K targets now back in view.

Ethereum (ETH) is trading around a critically important zone after retreating from $3,300. This asset is holding at around $3,200 after a clean retest of a previous trendline, which had been serving as resistance.

Daily trading volume has risen sharply, now at over $27 billion, a 128% increase from the previous day. ETH has moved between $3,190 and $3,360 in the past 24 hours and remains up 3.3% on the week. It is currently 35% below its peak of $4,950, reached in August 2025.

Retest Holds Near Short-Term Support

Ethereum’s breakout above its descending trendline earlier this month was followed by a measured pullback. That trendline is now acting as support alongside the 20-day moving average. Analyst BATMAN described the setup as a “solid retest,” noting ETH is moving as expected.

So far, Ethereum is playing out exactly as I expected.

Right now, it’s retesting its previous bearish trendline, with added support from the 20-day MA.

Solid retest setup here from $ETH https://t.co/PN7m8Fssq5 pic.twitter.com/H3TWbyumNY

— BATMAN ⚡ (@CryptosBatman) January 19, 2026

The price action remains steady near $3,200. As long as this area holds, a return to the $3,400 level remains on the table. If the asset breaks below it, near-term momentum may slow, but the overall structure is still intact for now.

Furthermore, Ethereum recently cleared its 50-day moving average and stayed above it, signaling short-term strength. Analyst StockTrader_Max says the next logical level is the 200-day moving average, currently around $3,650.

The current chart structure suggests the potential for a continued move higher. A possible Elliott Wave count suggests ETH may be forming a third wave, with a projected target near $4,000. This outlook depends on the asset holding above support between $2,980 and $3,085.

You may also like:

• Traders Pile Back Into Ethereum Futures as Binance Volume Breaks December Lull

• Ethereum Sets Record With 393,600 New Wallets in One Day

• Bitcoin’s 2026 Rally Has Legs – But Only If These Risks Fade

Activity on Chain Reflects Growing Interest

Glassnode data shows a rise in network usage. Daily active addresses have doubled over the past two weeks, now above 800,000. At the same time, Ethereum-based ETFs have added more than 158,000 ETH since December 29, an inflow worth over $500 million.

The strongest buying has taken place between $2,770 and $3,100. Analyst Ali Martinez stated,

“$3,085 — that’s the level Ethereum needs to hold to have a chance of a bullish breakout.”

As previously reported, staking participation has reached a new all-time high, and wallet activity continues to rise. These trends suggest steady growth on the network, even as the price remains within a wide range.

In more than two months, ETH has made sideways movements between 2,600 and 3,400. A volume-supported break above $3,400 may open up the option of $3,660 and even 4,000 in case momentum continues.