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The price of Ethereum recorded a decline after a steady recovery that began in mid-December. Despite falling more than 4% in the last 24 hours, ETH is still up about 5% on the week and has been trading almost flat over the past month. This sideways movement reflects a market stuck between buyers and sellers.
The recent rejection of quasi-resistance highlights this imbalance. Buyers continued to step in, but did not push enough to force a breakthrough. As a result, Ethereum is now at a critical decision point where a single level can determine whether the decline will remain minor or intensify further.
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The symmetrical and tilted triangle shows the buyers’ hesitation at the resistance
Ethereum has continued to trade in a symmetrical triangle since early November. This pattern is formed when the price makes highs, lows and lows at the same time, which indicates that buyers and sellers are active, but neither side is in control. This explains why ETH has difficulty identifying a clear trend despite several attempts in both directions.
That tension was clearly on display this week. After recovering from the lower trendline on December 18th, Ethereum rose steadily until testing the upper trendline again on January 7th. As in the rejection of the upper trend line on December 10, the sellers intervened and the price fell.
Momentum confirmed this hesitation. Between December 10 and January 6, the price of Ethereum made a lower high while the relative strength index, or RSI, made a higher high. RSI measures momentum strength. When momentum rises and price does not, this indicates weak purchasing power. This hidden negative deviation often appears when buyers fail to break resistance.
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In simple terms, buyers have shown interest, but have not completed their move. This lack of commitment allowed sellers to defend the trend line once again.
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Short holders create volatility while highlighting cost base support
The chain’s data helps explain why momentum is slipping. The group driving the recent volatility has been very short-term holders, according to data from the HODL wave – a metric that highlights categories for holding duration.
Wallets holding ETH from day to week reduced their supply share from around 2.05% in late December to around 1.34% during the January 6 price resistance test. Those sales coincided closely with declines near the upper trend line.
The same group began to rebuild their positions after the correction began, raising their stake again to 1.67%. This pattern of buying on the dip and taking profits near the highs creates a rotation, not a trend. It increases the pressure during the highs and weakens the continuity.
This behavior is important because Ethereum is commercial For its purchase cost. The large supply pool is between about $3,146 and $3,164, representing more than 3.1 million ETH. This domain acts as a key decision making area. If the price stays above (which is not the case at press time), buyers have a solid base to work from.
If it is broken, the order below the range becomes weaker.
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The next big block just below this range appears in the area between $2,819 and $2,835, where about 3.0 million eth changed hands.
That gap explains why short-term selling near resistance is risky. If the support is broken, the price can fall quickly before finding a stronger base.
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Can Whales Help Ethereum Price Defend $3,140?
Although short-term holders added to the volatility, long-term participants quietly supported the market. Since the beginning of the decline, the big holders (whales) began to absorb the supply, which helped to prevent a more severe collapse. Since January 7th, major Ethereum holders have added about 200,000 eth to their balances.
At current prices, this represents about $620 million of supply absorption during the downturn. This supports the reason why Ethereum is stabilizing instead of collapsing.
Everything is now centered around a level. Daily close above $3 resets $140 eth Above the lower edge of the most important demonstration of the main purchase cost and the road opens again towards $3,300 and another attempt to test the upper border of the triangle.
First look at the $3,080 level on the upside. A sustained stop below exposes the weaker demand area below, increasing the risk of a deep drop towards the $2,800 level.
The price of Ethereum does not show weakness but rather indecision. There are buyers, the activity of sellers is constant, and neither side wants to push hard enough. The price remains at key levels until the hesitation mode changes with engagement.
