Ethereum (ETH) is currently trading around $3,200, experiencing a slight decline over the last 24 hours, but showing an 8% increase over the past week.

Trading volume is reported to be above $28 billion. Following a recent movement above the 21-day moving average (MA), traders are keenly awaiting a possible new trend.

Ethereum’s Breakthrough Above 21-Day MA

ETH has successfully closed several daily candles above its 21-day MA with respect to the ETH/BTC pairing. Michaël van de Poppe noted:

“It broke above the 21-Day MA and it held it as support.”
(Translation: It broke above the 21-Day MA and established it as a support level.)

He believes this might herald the first significant upward trend since the summer months. As it stands, ETH is trading above 0.035 BTC, moving past a prolonged consolidation phase.

This price level had previously functioned as a resistance point during market declines; now it’s acting as support. The market is gaining momentum, evidenced by rising RSI values, but it’s not yet overbought.

Moreover, Ethereum has rebounded multiple times from a support zone ranging between 0.03 and 0.0325 BTC, a range that has remained intact since late 2025. Daan Crypto Trades characterized ETH as “very compressed against BTC,” implying that a significant price shift could be imminent, pointing out the 200-day moving average and the 0.032 level as critical points to monitor.

On the ETH/USDT chart, the asset has moved beyond a descending channel, marking the breakout after a period of consecutive lower highs. Lucky shared a chart, highlighting Ethereum’s resurgence above $3,200 back into a support area that had earlier displayed resistance during a downturn.

ETH is tracking this pattern.

👀✔️ https://t.co/xrPXHoi0kV pic.twitter.com/oUdIEgmMrs
— Lucky (@LLuciano_BTC) January 7, 2026

Price Trends and Short-Term Forecasts

ETH just completed its first red daily candle in six days. Analyst Ted commented:

“This was needed, as it has now cleared most late longs.”
(Translation: This was necessary as it has now eliminated many late longs.)

He maintains that the trend remains intact as long as ETH remains above $3,200. In another comment, CryptosBatman suggested a potential double bottom formation, although there remains caution due to near resistance levels. A breakout could propel the price target towards $3,900, coinciding with the 1.618 Fibonacci extension.

Recent data from CryptoQuant revealed a low of under 16.5 million ETH held on exchanges, similar to historic lows seen in recent years. This low reserve suggests minimal selling pressure in the impending timeframe. Concurrently, net inflows into spot ETH ETFs are now positive, signaling renewed institutional interest, further supporting Ethereum’s current price movement.