Technical analysis by SmartEdgeTrading about Symbol ETH: Buy recommendation (1/7/2026)

By analyzing the #ETHUSD chart on the 1H timeframe, we can see that after maintaining a strong bullish structure, Ethereum continued to trade higher and successfully pushed into the $3,290 – $3,305 region, which is marked on the chart as a key liquidity / resistance (supply) zone. Following this impulsive upside move, ETH is now showing short-term weakness and rejection from the highs, indicating that liquidity above has been tapped. Price is currently trading around $3,205, where we can observe a sharp reaction to the downside, suggesting short-term exhaustion after the rally. This rejection has created a short-term liquidity imbalance, and based on the current market structure, a pullback is likely before any further continuation. As projected on the chart, price may retrace toward the $3,190 – $3,205 demand zone, which aligns with prior structure support and resting liquidity below the current price. The expected short-term downside correction could be approximately 60–90 points, allowing the market to rebalance and potentially form a higher low. If buyers step in from this demand area, ETH could resume its bullish continuation toward $3,236 and later $3,276, as highlighted by the upside projection. As long as price holds above the major demand zone around $3,190, the overall market structure remains bullish, and any downside move should be considered a healthy correction rather than a trend reversal. This analysis will be updated as price reacts at the highlighted levels. Support with your likes and comments to motivate me to share more insights, and feel free to share your view on whether Ethereum will continue higher after the pullback or break down from this zone.