Ethereum's Recent Breakout

As of mid-January 2026, Ethereum (ETH) is showing some promising signs after a tough period. The price has broken out of a long downward-sloping channel that kept it trapped for weeks. Importantly, the old resistance level around $3,000 has now turned into support – meaning the price tends to bounce up instead of falling through when it touches that area.
Right now ETH is trading around $3,100–$3,115 and moving sideways (consolidating) just below the next tough resistance zone of $3,300–$3,500.

The Technical Picture
For months Ethereum was stuck in a pattern of lower highs and lower lows – a classic bearish sign. In early January it finally broke above that pattern.
This breakout is considered bullish because:
The previous ceiling became a floor (classic sign of changing mood)
Price is holding above $3,000 instead of falling back
If ETH manages to push through $3,300 in the coming days/weeks, many traders think it could reach $3,500 quite quickly and possibly even $4,000 if things get really exciting.
On the other hand – if it fails and drops below $3,000 again, it could slide back toward $2,900 or even $2,600.

RSI
The RSI (a popular speed/momentum tool) recently got too high (overbought), warning that the rally was getting overheated.
Good news: it has cooled down nicely into the 52–68 range.
This is healthy – the price can keep rising without being immediately exhausted. It gives the market some breathing room for another potential leg up.

On-Chain Numbers Look Encouraging
Behind the scenes, real activity on the Ethereum network is improving:
The 30-day average of active addresses has climbed well above 400,000 (some days reaching 700k–800k)
New wallets are being created much faster since the recent Fusaka upgrade
Daily transactions are strong (over 2.2 million)
Historically, when more people actually use the network (not just speculate), sustainable price increases tend to follow. Many see this as one of the strongest parts of the current setup.

Bottom Line – Opportunities vs Risks
Bullish case: Clear $3,300 → possible move toward $3,500–$4,000 in the next few weeks
Bearish case: Lose $3,000 support → possible drop back to $2,600–$2,900 zone
The combination of the technical breakout + cooling momentum + growing real network usage is the most optimistic setup Ethereum has shown in quite a while. Still, crypto remains very unpredictable – always do your own research and never risk more than you can afford to lose.

Not advice, just observation, DYOR.