A growing number of analysts believe that Ethereum’s current price action is being misinterpreted. Although frustration is growing due to Due to Ethereum’s inability to stay above $3,000, some technical analysts are quick to point out that the structure forming beneath the surface tells a very different story. According to one analyst, the real risk at this time is not being bullish on Ethereum and try to sell in anticipation of a downward break.
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Higher lows and a structure that continues to tighten
Analyst’s technical view on Ethereum focuses less short-term momentum and more about the structure developing on the chart, which he says is even clearer than what is currently seen on the Bitcoin chart.
In particular, Ethereum price action is carving out a series of higher lows on the daily candlestick chart to form a tightening triangular pattern since December 2025. This type of behavior shows that each pullback is being absorbed at progressively higher levels, which is how strong trends reset before continuing.
Ethereum needs to avoid a drop below key support zones for this trend continuation setup to remain valid. According to the analyst, a fall below $2,860 would begin to weaken the pattern, while a close below $2,780 would invalidate the high-low structure.
At the time of writing, Ethereum is trading around $2,950, which is dangerously close to the lower limit of this setup. Therefore, some merchants You will be tempted to short Ethereum. at this level, but the analyst called it the dumbest thing to do here.
As long as those levels ($2,860 and $2,780) hold, the analyst sees no technical justification for betting against ETH, especially near the lower boundary of the channel. where buyers have repeatedly intervened.
If support holds, the next move would be a gradual return to the upper trend line of the channel, which is just below $3,340. A move towards that region would bring the price back into direct contact with overhead resistance and set the stage for a breakout if buying pressure continues to build.
Ethereum price chart. Source: @Tryrexcrypto on X
The Bigger Picture Behind Ethereum Price Action
Ethereum enters 2026 without clear bullish momentum, a reality that has weakened sentiment in the spot and derivatives markets. Spot ETF inflows into Ethereum and Bitcoin have slowed, and issuers have stood out with consistent days of outflows.
However, major asset managers still own huge amounts of Ethereum and are working on diversifying its activities in Ethereum. BlackRock, for example, filed an application with the SEC in December to launch an Ethereum exchange-traded fund, a move that will attract more institutional investors in the Ethereum ecosystem.
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Speaking of gambling, BitMine Technologies recently amplified its ETH stake amounts to more than $5.71 billion in Ethereum. in chain Arkham Intelligence data shows that the company has bet an additional 171,264, worth $503.2 million, pushing your total bet to more than 1.94 million ETH.
Featured image from Unsplash, chart from TradingView
