TLDR
- Ethereum experienced a sharp decline to $2,920, breaking the $3,000 level for first time since November
- Price quickly rebounded 9% to stabilize above $3,200
- Key support zone at $3,066-$3,160 was breached where 4.9 million ETH is held by over 4 million addresses
- Technical analysts note similarities with 2021’s bullish price pattern
- Early January typically shows negative returns for ETH before transitioning to positive streak in February
The cryptocurrency market witnessed intense price action this week as Ethereum dipped below the closely-watched $3,000 level before mounting a swift recovery. The move marks the first time since November that the leading smart contract platform has tested these price levels.
Market data shows that Ethereum began the week trading in a relatively stable range around $3,200-$3,340. However, selling pressure intensified on Monday, pushing prices through several key support levels.
The descent accelerated as Ethereum broke below the crucial $3,066-$3,160 range, a zone where blockchain data indicates substantial holder concentration. According to on-chain metrics, this area represents positions held by more than 4.12 million unique addresses controlling approximately 4.9 million ETH.
Monday’s selling climaxed with a drop to $2,920, representing a 12% decline from weekend highs. The market’s response was decisive, with buyers quickly stepping in to push prices higher. Within hours, Ethereum had recovered 9%, stabilizing above the $3,100 mark.
Trading volumes surged during the volatile price action, indicating strong market participation. The bounce from sub-$3,000 levels suggests robust demand at these price points, despite the initial breakthrough of key support zones.
Technical analysts have identified several patterns forming on Ethereum’s price charts. Of particular interest is an emerging inverse head and shoulders formation, with the left shoulder having formed near the $2,800 level in previous months.
Market observer Rekt Capital notes that the recent price action around $3,000 could be instrumental in developing the right shoulder of this pattern. Some traders view this technical structure as potentially bullish, with optimistic projections reaching as high as $7,000 if the pattern completes.

Blockchain data reveals a concentration of resistance between $3,360 and $3,450, where approximately 4.37 million addresses hold 6.47 million ETH. This zone may present challenges for upward price movement in the near term.
Adding another dimension to the analysis, several market watchers have drawn parallels between current price behavior and Ethereum’s movement during its 2021 bull run. During that period, ETH demonstrated similar technical patterns before achieving new all-time highs.
Historical data from CoinGlass presents an interesting seasonal perspective. Ethereum typically records negative weekly returns in the early days of January, but this pattern often reverses as February approaches, leading to extended periods of positive performance.
The recent price action has created interesting dynamics in holder behavior. The brief drop below $3,000 affected millions of addresses holding ETH at higher levels, potentially creating underwater positions for recent buyers.
Monitoring wallet activity shows increased movement during the volatility, with some larger holders adding to positions during the dip. This behavior suggests confidence among certain market participants despite the temporary price weakness.
Market structure analysis reveals the formation of new support levels following the recovery. The quick rejection of sub-$3,000 prices may establish this zone as a stronger support area for future price action.
Looking at broader market metrics, Ethereum’s price movements continue to influence the entire alternative cryptocurrency sector. As the second-largest digital asset by market capitalization, its stability often impacts overall market sentiment.
Currently trading at $3,230, Ethereum has maintained its recovery levels, showing a 3% increase in the last 24 hours. The price has found stability above the psychological $3,000 barrier that was briefly penetrated earlier in the week.
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