As of January 20, 2026, Ethereum (ETH) is trading in the red near $3,164, down 1.33% from its Sunday high of around $3,367. The pullback comes amid a broader market downturn sparked by escalating US–EU trade tensions, which have pushed Bitcoin (BTC) below $92,000 and dragged major altcoins, including ETH, lower.
While short-term sentiment has clearly taken a hit, Ethereum’s overall technical structure remains constructive, suggesting this move may be more of a controlled pullback than the start of a deeper breakdown.
Ascending Triangle Still Intact on the Daily Chart
Looking at the daily chart, Ethereum continues to trade within a well-defined ascending triangle pattern that has been developing since late 2025. This structure is marked by a sequence of higher lows, supported by a rising trendline, pressing against a strong horizontal resistance zone near $3,400.
During the latest upswing, ETH once again tested this resistance area but failed to break through convincingly. The rejection triggered the current pullback, with price now gradually drifting lower toward the ascending trendline support, which has consistently acted as a demand zone over the past few months.
This price behavior suggests the current dip is part of a broader consolidation within the triangle, rather than a bearish trend reversal.
Key Support Zone Under the Spotlight
As ETH trades around $3,160, attention is shifting toward the $3,130–$3,150 zone, where the ascending trendline converges with previous reaction points on the chart.
If Ethereum dips slightly further into this region and buyers step in with conviction, it would strengthen the bullish case and keep the ascending triangle firmly in play. Historically, this support has attracted aggressive buying, often leading to sharp rebounds back toward the upper resistance band.
A solid bounce from this area could set the stage for another attempt at the $3,400 resistance, especially if broader market conditions stabilize and Bitcoin finds its footing.
Potential Invalidation of the Bullish Setup
While the structure remains bullish for now, the risk is clear. A decisive daily close below the rising trendline would weaken the ascending triangle thesis and open the door for deeper downside in the short term.
Such a breakdown would suggest that buyers are losing control, potentially exposing ETH to a move toward lower support zones as traders reassess risk amid ongoing macro uncertainty.
Bottom Line
Ethereum is currently sitting at a make-or-break technical level. Despite macro-driven volatility and risk-off sentiment across global markets, ETH’s chart still favors a potential rebound as long as the ascending trendline support continues to hold.
For now, this looks like a healthy pullback within a larger consolidation, not a structural breakdown. The next reaction near trendline support will be critical. If bulls defend it once again, Ethereum could be setting up for another push toward the top of the triangle.