- Ethereum price stuck within a wedge pattern and failed to breach $3500.
- BlackRock adds $83.24 Million worth of ETH to its holdings as ETH ETFs maintain positive flows.
Ethereum (ETH) displayed a bearish movement and ended with a downtick at the end of January. Amidst the investors’ bullish optimism, the Ethereum price failed to breach the resistance band of $3500 and witnessed bearishness.
However, the impending wedge pattern noted on the chart signals that the ETH price might see a possible upward move.
At press time, the Ethereum price was trading at $3026, witnessing a decline of over 5.30% in the past 24 hours. Its market cap stood at $369.58 Billion, and its trading volume dropped by over 15%.
Ethereum Price Prediction: Is a Wedge Breakout Imminent?
Over the past two weeks, the ETH price continued to exhibit a downtick and consistently formed lower tops and lower bottoms. It showed a falling wedge pattern and sank over 20% in the last two months.
Per the price action, the Ethereum price failed to breach the $3500 mark and dragged below the key EMAs. This underlined significant selling pressure on the chart. Amidst the considerable price drop, crypto analyst Mags, in his recent post, posted bullish guidance about ETH.
According to his analyst, the Ethereum coin formed a monthly inverted head and shoulders pattern. The pattern’s neckline was around $4000, which, once cleared, opened the doors toward $7500 in the short term.

The Ethereum price was edging closer to its multi-month support zone at around $3000 at press time. This gave it a golden buying opportunity. With recent institutional buying activity and other bullish factors, a swift recovery could be a factor ahead.
BlackRock’s ETH Bag Grows: Bullish Signals for Ethereum?
The ETH price has gained institutional acceptance as an affordable investment due to its market value. The investment giant BlackRock has bought 24,529 ETH tokens worth about $83.24 million.
ETH ETFs finished their two closing days of the year with investors adding funds instead of withdrawing them. The cryptocurrency trading at a reduced price compared to its December peak suggests that investors might favor the bullish position.
BlackRock’s intentional decision to acquire ETH signaled positive developments in the sector. It was accompanied by increasing ETH activity in spot and derivative markets, and exchange withdrawals exceeded deposits.
According to market data, this month may start on a positive note. Even though these findings inspire optimism, investors should be cautious about potential downside risks.
What Does Futures Market Data Say?
Ethereum’s Open Interest (OI) has declined over 3.27% to $31.44 Billion. This further replicated a long, unwinding move in the past 24 hours.
ETH net outflows dominated by $45.29 Million in the last 24 hours. This sell pressure resurgence explains the cryptocurrency’s struggle to break out of the wedge pattern. This was in line with spot inflows, which peaked at $80.35 Million on Friday.

The immediate support zones for the Ethereum price were $3000 and $2760. At the same time, the resistance zones were $3280 and $3500.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
Varuni has been in the web3 space for half a decade, witnessing the changing dynamics of DLT, Blockchain and Web3. With 8 years of journalistic expertise, she has a keen interest in emerging technology and their impact on society. She has published news and on-chain analysis articles on Nasdaq as well as some of the top web3, crypto news firms. Currently, she heads The Coin Republic as the Editor-In-Chief.