ETH Price Prediction: Analyzing the Path to Recovery and New Highs

#ETH

• Technical Support Holding: ETH is testing a crucial support level at the lower Bollinger Band ($2,890). The bullish MACD divergence suggests selling pressure may be exhausting, setting the stage for a potential rebound towards the $3,160-$3,430 resistance zone.
• Strong Fundamental Backdrop: Despite the price slump, institutional confidence is growing. BlackRock's tokenization bets and Bitwise's bullish recovery thesis indicate major players are accumulating or building for a long-term Ethereum rally, targeting a retest of all-time highs.
• Catalysts for the Next Leg Up: The convergence of a technical bottom, increasing institutional adoption (e.g., Chainlink expansion), and sector reports signaling the end of the bear market could act as powerful catalysts to propel ETH out of its slump and into a sustained recovery phase.

ETH Price Prediction

Technical Analysis: ETH Shows Signs of Bottoming Near Key Support

As of January 23, 2026, ethereum (ETH) is trading at $2,925.39, finding support near the lower Bollinger Band at $2,889.42. The 20-day moving average at $3,160.81 acts as immediate resistance. The MACD indicator, while still negative, shows a significant bullish divergence with the histogram at +59.08, suggesting weakening downward momentum. 'The price is testing a critical support zone,' says BTCC financial analyst William. 'A sustained hold above the $2,890 level, coupled with the positive MACD histogram, could signal a near-term reversal towards the 20-day MA.'

Market Sentiment: Institutional Confidence Contrasts with Short-Term Weakness

Fundamental headlines paint a bullish long-term picture despite the current price slump. BlackRock's increased bet on Ethereum tokenization and Bitwise's report suggesting a potential end to the bear market and retest of all-time highs provide strong institutional validation. 'The news flow is decisively positive for ETH's long-term adoption narrative,' notes BTCC's William. 'While short-term technicals are weak, the growing institutional footprint and development activity, like Chainlink's expanded support, create a powerful fundamental floor for prices.' The sentiment is cautiously optimistic, with deep corrections viewed as accumulation opportunities.

Factors Influencing ETH’s Price

Ethereum Dominates Tokenization Race as BlackRock Bets Big Despite Price Slump

Ethereum commands a 66% stranglehold on the tokenized real-world assets market, dwarfing competitors like BNB Chain (10%) and Solana (5%). BlackRock's 2026 outlook positions ETH as the backbone of institutional tokenization, with Wall Street giants JPMorgan and Morgan Stanley accelerating investments through ETF filings and tokenized funds.

The iShares Ethereum Trust now holds $11 billion in assets, while digital treasury firm Bitmine added $100 million to its $13 billion position. Yet ETH trades at $2,944 - 40% below its peak - with technical indicators suggesting bulls must reclaim $3,050 to prevent further decline.

'Ethereum isn't just surviving the bear market, it's building the infrastructure for the next bull run,' said Jay Jacobs, BlackRock's US head of ETF products. The network's $362 billion valuation reflects what analysts call 'the AWS moment' for blockchain - where enterprise adoption eclipses speculative trading.

Chainlink Expands Trading Support as ETH Dips; DeepSnitch AI Targets 300x Post-Launch

Chainlink is advancing its market infrastructure with 24/5 trading support for US stocks and ETFs, aiming to bridge the $80 trillion traditional market with on-chain platforms. The move signals growing institutional adoption of blockchain technology for financial instruments.

Ethereum's price slipped below $3,000, creating volatility across crypto markets. Such pullbacks historically create fertile ground for standout presale opportunities.

DeepSnitch AI emerges as a presale contender with ambitious 300x return projections. The project's imminent launch is generating notable demand among investors scanning the presale calendar for high-potential entries.

Q4 2025 Signals Potential End to Crypto Bear Market: Bitwise Report

Bitwise's latest analysis suggests the cryptocurrency market may be nearing the end of its prolonged bear cycle, despite price declines in Q4 2025. Ethereum's ecosystem demonstrated remarkable resilience, with record transaction volumes signaling accelerating adoption of blockchain technology.

Corporate earnings in the crypto sector outperformed traditional market benchmarks, while stablecoin market capitalization surged past $300 billion - a clear indicator of growing institutional confidence. Decentralized exchanges like Uniswap processed higher volumes than their centralized counterparts, underscoring DeFi's enduring appeal.

The report highlights a fundamental paradox: while asset prices retreated, network activity and financial metrics revealed an industry maturing through the downturn. Ethereum's scaling solutions and Layer 2 networks processed unprecedented transaction loads, suggesting infrastructure improvements are bearing fruit.

Bitwise Recovery Thesis Suggests ETH May Retest All-Time Highs

Ethereum's market structure mirrors early 2023 recovery patterns, with Bitwise analysts identifying Q4 2025 as the likely bear market bottom. On-chain metrics show whales accumulating ETH at levels last seen before its $4,955 peak, while retail investors reduce exposure.

The divergence between price action and network activity resembles pre-bull market conditions. Whale transactions above $100k have surged to September 2025 levels, when ETH hit record highs. A supply crunch appears imminent as large holders absorb circulating coins.

Technical analysis highlights a multiyear trendline as critical support. The setup echoes 2023's recovery trajectory, where similar accumulation preceded a 300% rally. Market structure now suggests Q1 2026 could see comparable upside.

How High Will ETH Price Go?

Based on the confluence of technical and fundamental analysis, Ethereum presents a compelling case for a significant recovery in 2026. In the short term, a successful defense of the $2,890 support could propel ETH towards initial resistance at the 20-day Moving Average ($3,161) and the middle Bollinger Band. A break above this zone would open the path to the upper Bollinger Band near $3,432.

The more compelling narrative is the medium to long-term outlook. The institutional embrace highlighted by BlackRock's activity and Bitwise's recovery thesis suggests the current phase may be a consolidation within a larger bullish cycle. Analyst William from BTCC suggests that a return to the previous all-time high (around $4,878) is a plausible target for this cycle, with potential to exceed it if the tokenization trend accelerates.

Key price levels to watch are summarized below:

Ultimately, the height ETH reaches will depend on broader crypto market sentiment, Bitcoin's trajectory, and the real-world growth of the Ethereum network's utility, particularly in tokenization. The current setup suggests the risk/reward is favorable for long-term investors.