Jan 6, 2026
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Ethereum Nears Key Resistance Amid Historical Q1 Rally Setup
Ethereum (ETH) is showing potential for a significant rally despite recent end-of-year weakness.
Key Developments
- Ethereum recently broke above $3,200, reaching a high of $3,259, marking an 8.3% increase from the key $3,000 level.
- Analyst Niels noted that Ethereum's negative Q4 close, at -28.28%, could set up a strong Q1 rally, historically leading to positive returns following such declines.
- Historically, when ETH finishes Q4 in the red, Q1 tends to close positively, with past quarters seeing gains up to 52%.
Technical Analysis
- Analyst Ted Pillows highlighted resistance around the $3,000 and $3,200 levels, suggesting a breakout could push ETH towards $3,800-$4,000.
- A rejection from current resistance may see ETH drop towards $3,000.
- Ali Martinez pointed out a symmetrical triangle pattern on Ethereum’s chart, indicating a potential 30% move if the breakout holds.
Currently, Ethereum is trading at $3,253, a daily increase of 3.4%.
