A growing number of analysts believe that Ethereum’s current price action is misunderstood. Although there is frustration grows because of With Ethereum unable to sustain its value 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 risk is real now is not bullish on Ethereum and tries to close the position while waiting for a downward breakout.

Higher lows and structure that continues to tighten

The analyst’s technical view on Ethereum is focused less so in the case of short-term dynamics and more on the structure developing on the chart, which he believes is even clearer than what is currently perceptible on Bitcoin’s chart.

Specifically, Ethereum’s price action creates a series higher lows on the daily candlestick chart, forming a tightening triangle pattern from December 2025. This type of behavior shows that each pullback is absorbed at higher and higher levels, which is how forceful trends reset before continuing.

Ethereum must avoid a breakdown below key support zones for the 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 higher low structure.

At the time of writing, Ethereum is trading around $2,950, which is dangerously close to the lower end of this setup. That’s why some traders will be tempted to compact Ethereum at this level, but the analyst called it the stupidest thing that could be done here.

As long as these 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 stepped in.

If support holds, the next move will be a gradual return to the channel’s upper trendline, which is just below $3,340. A move into this region would bring the price back into direct contact with overhead resistance and set the stage for a breakout if buying pressure continues to escalate.

Ethereum price chart. Source: @Tryrexcrypto on X

The bigger picture of Ethereum’s price action

Ethereum enters 2026 without a clear upward momentum, and this reality has dampened sentiment in cash markets and derivatives markets. The inflow of spot ETFs into Ethereum and Bitcoin has slowed, with issuers seeing steady outflow days.

Nevertheless, major asset managers continue to hold huge amounts of Ethereum and this is happening they are working to diversify their activities on Ethereum. For example, BlackRock filed with the SEC in December to launch an exchange-traded fund on Ethereum, which was a move which will attract more institutional investors to the Ethereum ecosystem.

Speaking of the strike, BitMine Technologies recently reinforced his ETH holdings in Ethereum worth over $5.71 billion. On a chain data from Arkham Intelligence shows that the company wagered an additional 171,264 worth $503.2 million, pushing for all your share to over 1.94 million ETH.

Featured image from Unsplash, chart from TradingView