Ethereum's $3.2K Test: Can Bulls Convert Resistance into Solid Support for Continued Gains?
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Ethereum (ETH) is once again testing the $3,200 level, sparking debate among traders about whether this key price point can be transformed from a resistance level into solid support. As of today, January 13, 2026, ETH is trading around $3,203.6, reflecting a 2.94% increase over the past 24 hours.

Technical Analysis and Key Resistance Levels

ETH's recent price action reveals a complex interplay between bullish and bearish forces. The $3,200 mark has historically acted as a stiff resistance, with multiple prior attempts to breach it facing rejection. A significant supply zone lingers around $3,500, further complicating the path upward. This zone has consistently pushed back against price increases, aligning with previous distribution patterns.

Despite these challenges, Ethereum has shown resilience. A sell-off that brought the price down to the $2,600 - $2,700 range was met with strong defense, indicating solid demand at that level. Since then, ETH has transitioned into a range-bound structure within the Fibonacci golden zone.

Bullish and Bearish Scenarios

The current market sentiment appears to be cautiously optimistic, with analysts noting that the aggressive bearishness has weakened. However, the daily bias remains neutral to slightly bearish until ETH can reclaim the key moving averages, which are still acting as dynamic resistance. A daily close above the $3,500 zone, coupled with reclaiming the 200-day moving average, would signal a significant shift in momentum.

Conversely, failure to hold above the $2,600 - $2,700 demand area could lead to further downside. Some analysts point to a potential deeper retracement towards $2,626, $2,258 or even $1,820 if downward momentum builds. The formation of a daily lower low also keeps the broader structure tilted bearish.

Ascending Triangle and Potential Breakout

Despite trading ~36% below its August 2025 high, Ethereum remains in a bullish pattern, specifically, it's been in an ascending triangle since 2020. If ETH holds that sloping trendline, an immediate breakout above $4100 would target approximately $5525 on a linear scale. If Ethereum drops to ~$2200 support first and then breaks out, we can expect ~$6190.

Market Sentiment and Liquidation Levels

Analysis of liquidation heatmaps reveals a build-up of long liquidations around the $3,200 - $3,400 range, suggesting that many traders entered high-leverage long positions that are now vulnerable. The clearing of these overleveraged positions could increase short-term downside risk. The next major cluster rests around the $3.3K region, acting as a natural price magnet following the recent sweep.

Overall Outlook

Ethereum is at a critical juncture. Whether $3,200 becomes a reliable support level hinges on its ability to overcome immediate resistance and sustain buying volume. A confirmed breakout above the $3,400 - $3,500 range, supported by strong volume, would pave the way for further gains. However, failure to do so could lead to a retest of lower support levels. For now, the ETH price reflects equilibrium rather than momentum.


Written By
Aarav Chatterjee is a tech and business correspondent focused on innovation, disruption, and the startup economy. His crisp analysis and industry insights help readers navigate fast-moving developments in technology. Aarav’s writing reflects curiosity, clarity, and credibility. He aims to connect technological progress with real-world outcomes.
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