Ethereum (ETH) Eye Burst as Bulls Defend $3.2K Level

Ethereum is holding $3,200 after a clean trendline retest, with rising volume, strong on-chain data, and $4K targets now in its sights.

Ethereum (ETH) is trading in significant territory after pulling back from $3,300. The stock is holding around $3,200 after a retest of the previous trendline, which served as resistance.

Daily trading volume has increased significantly, now exceeding $27 billion, an increase of 128% from the previous day. ETH has moved between $3,190 and $3,360 in the last 24 hours and is up 3.3% for the week. It is currently 35% below the peak of $4,950, reached in August 2025.

Retest Holds Short-Term Support

Ethereum’s breakout above its downtrend line earlier this month was followed by a moderate pullback. That trendline is now serving as support along the 20-day moving average. Commentator BATMAN described the setup as “rigorous reexamination,” noting that ETH is moving as expected.

So far, Ethereum is playing as well as I expected.

Currently, it is retesting its previous bearish line, with additional support from the 20-day MA.

A strong retest setup here from $ETH pic.twitter.com/H3TWbyumNY

– BATMAN ⚡ (@CryptosBatman) January 19, 2026

Price action remains stable near $3,200. As long as this area holds, a return to the $3,400 level remains on the table. If the asset breaks below it, the near-term momentum may slow down, but the overall structure remains stable for now.

Furthermore, Ethereum recently cleared its 50-day moving average and stayed above it, showing short-term strength. StockTrader_Max analyst says the next reasonable level is the 200-day moving average, currently around $3,650.

The current chart structure suggests potential for further upward movement. The Elliott Wave probability calculation suggests that ETH is likely to form a third wave, with a target target near $4,000. This view depends on the asset’s support above between $2,980 and $3,085.

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Activity in Chain Shows Growing Interest

Glassnode data shows an increase in network usage. Daily active addresses have doubled in the past two weeks, now over 800,000. At the same time, Ethereum-based ETFs added more than 158,000 ETH as of December 29, an income worth more than $500 million.

The strongest buying occurred between $2,770 and $3,100. Analyst Ali Martinez said,

“$3,085 – that’s the level Ethereum needs to hold to have a chance of a bullish exit.”

As previously reported, active participation has reached a new high, and wallet activity continues to rise. These trends suggest stable growth in the network, as the price stays within a wide range.

For more than two months, ETH has made a sideways movement between 2,600 and 3,400. A volume-supported break above $3,400 could open an option for $3,660 and even $4,000 if momentum continues.