- The Ethereum price shows a bullish rebound from the support trendline of a triangle.
- The contraction in OI suggests forced liquidations of leveraged long positions as the downtrend strengthened.
- ETH’s fear and greed index at 35%highlights a fear sentiment among market participants.
On Wednesday, January 2, 2026, the Ethereum price bounced over 2.6% to reach its trading value of $3,015. The renewed buying pressure followed U.S. President Doland Trump’s decision to cancel EU tariffs and announce a framework for the Greenland deal. However, the uptick is still considered a short relief rally to recuperate the exhausted bearish momentum before next breakdown. The latest on-chain data further accentuated the selling pressure from large investors, accelerating a risk of prolonged correction.
Whales Move 110K ETH as Ethereum Price Corrects
Over the past week, the Ethereum price plunged from $3,400 to current trading value of 15.68%. Consequently , the asset’s market cap plunged to $363.6 billion. The downswing primarily triggered with geopolitical tension as Trump announced additional tariffs on eight European nations, which he recently revoked.
However, the open interest associated with the ETH’s further contract also retraced from $41.67 billion to $38.4, projecting a 7% drop. The loss of open interest can be attributed to forced liquidation of long positioned traders as market downtrend accelerated.
In addition, traders likely exited their existing position to reduce exposure to leveraged trades, withdrawing cf speculative force from the market.
In addition, a report by analyst Ali Martinez indicates that big holders are making major shifts as over 110,000 ETH tokens have been moved about in the last nine days, indicating that large participants are making active changes through the volatility. Historically, the whale exit has often coincided with major market tops and aggressive correction in price
The derivative data and whale behaviour showing uncertainty and traders active withdrawal from ETH market. If the trend persists, the coin price would face additional pressure, signalling a risk of prolonged correction.
Ethereum Price Shows Bull Cycle With this Triangle Pattern
With today’s price jump, the ETH coin shows a bullish rebound from $2,880 floor, This level coincides with a support trendline intact since June 2025. The dynamic support has acted as the major accumulation zone for buyers to recoup their exhausted bullish momentum.
In addition, the support trendline also contributes to the formation of a symmetrical triangle ;. The chart setup is characterized by two converging trendlines that drive a short term consolidation in price.
The sideways action within two converging trendlines allow the traders to build sufficient momentum for the next breakout.
As the Ethereum price rebounds from the pattern’s bottom trendline and rebound 11% to challenge the overhead trendline. A potential breakout from this resistance will accelerate the bullish momentum for sustainable recovery ahead.
ETH/USDT 1d Chart
On the contrary, the downtick in daily exponential moving averages (20, 50, 100, and 200) suggest the path to least resistance is down the bearish trend ahead. The momentum indicator RSI at 40% further accentuates the bearish momentum is price.
If the Ethereum price breaks below the bottom support, the sellers could chase bottom support at $2,600.
