Technical analysis by BeInCrypto about Symbol ETH on 1/5/2026

ETHUSD has started to show early signs of a trend reversal after months of weakness. The price has broken above a descending channel that had guided the bearish structure since early October, marking the first meaningful structural shift in weeks. This breakout was supported by a bullish RSI divergence between October 10 and December 18, where price made a lower low while RSI formed a higher low, signaling weakening selling pressure. However, momentum is not fully clean yet. Between December 10 and January 5, Ethereum has started forming a lower high while RSI trends higher, creating a hidden bearish divergence. This setup often leads to consolidation or a shallow pullback rather than a full trend failure. A close below $3,220 would strengthen this consolidation risk. Key levels now define the outlook. ETHUSD needs a move above $3,470, roughly a 10% rally, to invalidate the bearish divergence and confirm reversal strength. Until then, price remains vulnerable to volatility, with derivatives positioning adding short-term risk.