Technical analysis by isahebdadi about Symbol ETH: Buy recommendation (1/4/2026)

Short-Term Technical Analysis (Days to Weeks) On the daily timeframe, ETH is trading inside a large ascending channel (purple box). After a decline from the channel’s upper boundary, price is now sitting near the mid-channel support and internal dashed trendline, aligned with the moving average (orange). This area represents a critical decision zone. Bullish Short-Term Scenario: A sustained move above $3,150–$3,200 and a bullish reclaim of the moving average could trigger a new upward leg toward the upper channel boundary. Bearish Short-Term Scenario: Failure to hold above $3,000 and a breakdown of the internal trendline could open the door for a deeper pullback toward the channel low. Short-Term Target: $3,800–$4,200 Short-Term Stop-Loss: Daily close below $2,900 Long-Term Technical Analysis (Months to 1 Year) From a broader perspective, ETH remains structurally bullish but range-bound. Price action inside the channel suggests controlled accumulation/distribution rather than a strong directional trend. Bullish Long-Term Scenario: A confirmed breakout above the ascending channel could launch ETH into a powerful trending phase with new all-time targets. Bearish Long-Term Scenario: A breakdown below the channel floor would signal structural weakness and a deeper corrective phase. Long-Term Target: $5,200–$5,800 Long-Term Stop-Loss: Structural break below $2,300 Fundamental Analysis (Brief) Ethereum remains the backbone of the Web3 ecosystem: •Growing adoption of DeFi, NFTs, and Layer 2 solutions •Net supply reduction through fee-burning mechanisms •Potential institutional inflows via ETH-based ETFs •Core infrastructure for smart contracts and tokenized economies Key risks include L1 competition and broader crypto market conditions. Final Takeaway ETH is sitting at a major inflection zone: •Holding mid-channel support favors a move higher •Breakdown increases downside risk toward channel lows At this level, waiting for confirmation offers the best risk-to-reward setup.