Ethereum (ETH) Aims for Breakout as Bulls Protect $3.2K Barrier

Ethereum (ETH) is currently trading at a crucial level, holding steady around $3,200 after a successful retest of a previous trendline that had acted as resistance.

Daily trading volume has surged, now exceeding $27 billion, a 128% increase from the previous day. Over the past 24 hours, ETH’s price has fluctuated between $3,190 and $3,360, reflecting a 3.3% increase over the last week, although it remains 35% below its peak of $4,950 from August 2025.

Retest Holds Near Short-Term Support

Ethereum’s rise above a descending trendline earlier this month was followed by a measured pullback, and this line currently serves as a support level along with the 20-day moving average. Analyst BATMAN noted:
“So far, Ethereum is playing out exactly as I expected. Right now, it’s retesting its previous bearish trendline, with added support from the 20-day MA.”
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The price is presently stable around $3,200, and maintaining this level could open up a return to the $3,400 mark. However, a drop below it might dampen near-term momentum, albeit the overarching structure remains intact for now.

Additionally, Ethereum has recently surpassed its 50-day moving average, indicating short-term strength. Analyst StockTrader_Max says that the next target could be the 200-day moving average, now approximately $3,650.

Current chart trends suggest potential for an upward trajectory. An Elliott Wave count indicates ETH may be forming its third wave, projecting a target near $4,000, contingent upon the asset sustaining levels above $2,980 and $3,085.

Activity on Chain Reflects Growing Interest

Data from Glassnode indicates an increase in network utilization, with daily active addresses doubling to over 800,000 in the past two weeks. Similarly, Ethereum-based ETFs have accumulated over 158,000 ETH since December 29th, amounting to an inflow of more than $500 million.

The most robust buying activity has taken place between $2,770 and $3,100. Analyst Ali Martinez remarked:
"$3,085 — that’s the level Ethereum needs to hold to have a chance of a bullish breakout."

As previously reported, staking participation has hit a new all-time high, while wallet activity continues to rise, indicating steady growth in the network despite price volatility. For over two months, ETH has traded in a sideways range between $2,600 and $3,400. A volume-driven break above $3,400 could pave the way for targets of $3,660 and even $4,000, should momentum persist.