Ethereum’s Diamond in the Rough: $3.6K or Bust?

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Ah, Ethereum, that restless spirit of the digital realm, now wanders the valleys of $2,900, its steps heavy with a 3% daily decline. Over the past week, it has shed nearly 12% of its luster, as sellers, those relentless harbingers of doubt, push it below the sacred $3,000 threshold. Yet, in the shadows of this descent, whispers of a rebound to $3,600 stir the air, carried by the winds of chart patterns and the quiet resolve of large holders.

A Diamond in the Chaos

Behold, on the 1-hour chart, a diamond forms-a rare gem in the rough, shared by the analyst Bryant. This pattern, born of a clear downtrend, now confines the price within a narrow embrace between $2,900 and $2,985. The diamond, a shape oft linked to reversals, gleams with promise as the asset compresses, its fate hanging in the balance. Nestled within a demand zone, where past buying interest has left its mark, it awaits its moment. Should it break above its upper edge, the path to $3,600 may open, though Bryant, in his humility, notes this is his first encounter with such a structure, urging caution in its interpretation.

On the monthly canvas, a broader tale unfolds. Trader Tardigrade, with the eye of a sage, points to a double bottom pattern, its neckline breached as ETH ascends from the lows of 2022. Within this larger structure, an inverse head-and-shoulders pattern emerges-a classic trio of left shoulder, head, and right shoulder. Both patterns, revered in the markets, whisper of potential reversals, their voices carried on the winds of hope.

$ETH/monthly
Double bottom pattern on macro with a brewing smaller inverse head and shoulders
This is super bullish to #Ethereum
– Trader Tardigrade (@TATrader_Alan) January 23, 2026

The Weight of the Trend

Yet, the present is not without its trials. ETH trades beneath the 9-week exponential moving average, a line near $3,150 that holds the key to its short-term fate. To reclaim momentum, it must rise above this threshold, a task easier said than done. The Relative Strength Index, at 43, lingers below 50, its descent beneath the signal line a testament to the lack of buying fervor. No divergence is seen, but the RSI approaches levels that have, in the past, marked short-term floors-a glimmer of hope in the gloom.

The Silent Accumulation

Amidst the weakness, a quiet strength emerges. Large holders, those titans of the crypto realm, increase their exposure to ETH through OTC channels. One whale, in a move both bold and enigmatic, adds over 20,000 ETH, valued at $59 million, to their treasury. Though the market remains unmoved, this act joins a broader trend of silent accumulation. As CryptoPotato reports, on-chain data reveals that the realized price of coins in accumulation wallets nears the current market valuation-a sign that, beneath the surface, stronger hands prepare for what may come.

And so, Ethereum stands at a crossroads, its future a tapestry of possibilities. Will the diamond break, paving the way to $3,600? Or will the weight of the trend prevail, casting it further into the depths? Only time, that eternal arbiter, will tell. Until then, we watch, we wait, and we wonder-for in the world of crypto, certainty is but a fleeting illusion.

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2026-01-23 21:17