Ethereum (ETH) is approaching a pivotal technical level as price action consolidates near the $3,100–$3,200 support zone, a region analysts believe could trigger a 10% relief rally if buyers successfully defend it. According to a recent technical breakdown by More Crypto Online, ETH’s corrective phase appears to be nearing completion, setting the stage for a potential bullish continuation.
Elliott Wave Structure Suggests Correction Is Complete
On the 30-minute ETH/USD chart, Ethereum has maintained an overall uptrend that began on December 18, 2025, rallying strongly from lower levels to a local peak near $3,480 earlier this month. Following that advance, ETH entered a corrective pullback that has so far respected key technical levels.
The decline is labeled as a three-wave A-B-C correction, consistent with a yellow B-wave scenario in Elliott Wave theory. This type of structure often precedes renewed upside if support holds. Importantly, the pullback has remained corrective rather than impulsive, suggesting bears have yet to take full control.
Alternative wave counts also support a bullish bias, with the current move potentially forming part of a broader (3)-(4)-(5) wave sequence. As long as price remains above critical support, the larger uptrend structure stays intact.
Fibonacci Cluster Defines the Bull–Bear Battleground
A cluster of Fibonacci retracement levels reinforces the importance of the current price zone:
23.6% retracement: ~$3,190
38.2% retracement: ~$3,143
50% retracement: ~$3,106
This tightly packed Fibonacci range forms a high-confluence support area, often referred to as a “decision zone.” Historically, such zones attract strong buyer interest, particularly when aligned with an existing uptrend.
According to More Crypto Online, for the bullish scenario to remain valid, buyers must step in decisively within this region. A successful defense would likely invalidate bearish alternatives and open the door for a renewed move higher.
“While the yellow B-wave scenario can be seen as complete, we only have a 3-wave pullback so far and support is still holding. To keep the uptrend intact, which started on December 18th, the bulls need to show up in this region. Key spot here.”
— More Crypto Online, January 7, 2026
Upside Targets: $3,300 and Beyond
If bullish momentum returns, Ethereum could attempt a recovery toward $3,300, with higher resistance near prior highs. A decisive bounce from current levels would suggest the correction has ended and that ETH is preparing for its next impulsive advance.
However, failure to hold the $3,100 area could shift momentum in favor of sellers, exposing ETH to deeper Fibonacci extensions and prolonging the corrective phase.
Macro and Fundamentals Support Long-Term Strength
Beyond technicals, Ethereum’s broader outlook remains constructive. Market sentiment across crypto is cautiously optimistic, with Bitcoin’s stability providing a supportive backdrop. Additionally, anticipation around future Ethereum network upgrades, particularly those focused on scalability and efficiency, continues to underpin long-term demand.
Ethereum’s dominant role in DeFi, NFTs, and Web3 infrastructure also reinforces its fundamental value proposition, making pullbacks into major support zones especially noteworthy for market participants.
What Traders Should Watch
As of January 8, 2026, $ETH is trading near $3,150, down modestly but showing resilience. Traders and investors are advised to monitor:
Volume expansion near support
Momentum indicators for bullish divergence
Price reaction at the $3,100–$3,200 range
A surge in buying pressure would signal confidence and increase the probability of a relief rally, while a breakdown below support would warrant caution.
Final Thoughts
Ethereum’s current setup highlights the delicate balance between risk and opportunity that defines crypto markets. With strong technical confluence and a still-valid uptrend, the coming sessions may prove decisive for ETH’s short-term direction. For informed investors, staying alert to these key levels can provide a valuable edge in a fast-moving market.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Coin Crypto Newz is not responsible for any losses incurred. Readers should conduct their own research before making any financial decisions.
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