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Ethereum’s Critical Juncture: Wyckoff Accumulation Suggests $2,900-$2,950 as Launchpad for Major Rally

Ethereum’s Critical Juncture: Wyckoff Accumulation Suggests $2,900-$2,950 as Launchpad for Major Rally

Published:
2026-01-25 09:49:02
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Ethereum (ETH) has entered a decisive phase, finding critical support between $2,900 and $2,950 after a retreat from its recent high of $3,300. This price zone is now widely regarded by market analysts as a make-or-break threshold that will determine the asset's near-term trajectory. The stabilization at this level is particularly significant as it aligns with a key principle of the Wyckoff accumulation model, where the current dip is being interpreted as the "Last Point of Support" (LPS). In this classic market structure, the LPS represents the final test of demand before a potential springboard for renewed and sustained upward momentum, provided the support level holds firm. Technical analysis of Ethereum's longer-term charts reveals a multi-year consolidation phase that has been in effect since 2022. This extended period of sideways movement, following the previous bull market peak, is characteristic of a major accumulation phase where smart money is believed to be building positions. The current price action around the $2,900-$2,950 support band is therefore seen not as a sign of weakness, but as a critical test within this larger consolidation pattern. A successful hold above this support could validate the accumulation thesis and set the stage for a significant breakout. The implications of holding this support are substantial for Ethereum's price prospects. A firm bounce from the current levels could trigger a rally that first targets a reclaim of the $3,300 resistance. A decisive break above that level WOULD then open the path toward higher technical targets, with the next major resistance zones anticipated in the $3,600 to $3,800 range. Beyond that, a full breakout from the multi-year consolidation could initiate a new macro uptrend. However, failure to maintain the $2,900 support would invalidate the bullish Wyckoff setup, likely leading to a deeper correction toward the next significant support zone around $2,600-$2,700. For bullish practitioners, the current moment represents a high-conviction accumulation zone, where the risk-reward ratio is favorable for positioning in anticipation of the next significant leg up in Ethereum's market cycle, provided the critical support demonstrates resilience.

Ethereum Finds Critical Support Level: Will It Trigger a Significant Rally?

Ethereum (ETH) has stabilized in the $2,900–$2,950 range after retreating from $3,300, a zone now viewed as a make-or-break threshold for its near-term trajectory. Analysts point to the Wyckoff accumulation model, suggesting the current dip represents a "Last Point of Support"—a potential springboard for renewed upward momentum if held.

Technical charts indicate a multi-year consolidation phase since 2022, with the $2,900 level mirroring early 2025 patterns. A sustained hold could propel ETH toward $5,000, though the mid-$4,000s remain a psychological barrier. Market sentiment hinges on this support becoming a launchpad rather than a breakdown point.

Ethereum Advances Quantum-Resistant Security with $2M Research Initiative

The ethereum Foundation is taking proactive measures to future-proof its network against quantum computing threats. A dedicated Post-Quantum security team has been formed, led by cryptography engineer Thomas Coratger with support from Emile of the leanVM project. Senior researcher Justin Drake revealed a $2 million incentive program to accelerate development of quantum-resistant cryptography.

Ethereum's strategy centers on leanVM architecture, which optimizes zero-knowledge proofs and hash-based signatures for post-quantum security. This institutional MOVE follows years of quiet R&D, with Drake noting the accelerating timeline of quantum computing advancements. The foundation aims to implement protections well before 2026, when quantum computers may begin threatening existing cryptographic standards.

Ethereum Foundation Bets $2M on Quantum Resistance as Timeline Accelerates

The Ethereum Foundation has mobilized a specialized security team under cryptographic engineer Thomas Coratger, backed by $2 million in funding. This post-quantum (PQ) initiative includes a $1 million Poseidon Prize for breakthroughs in quantum-resistant cryptography.

Senior researcher Justin Drake frames this as an existential priority: 'It's now 2026, timelines are accelerating. Time to go full PQ.' The foundation's leanVM project seeks to implement quantum-proof signatures for zero-knowledge proofs, while parallel efforts explore multi-client devnets.

This strategic pivot comes as quantum computing advances threaten current encryption standards. The foundation's preemptive move mirrors growing institutional concerns about cryptographic obsolescence across blockchain ecosystems.

ETHZilla Diversifies Treasury with $12.2M Jet Engine Purchase After Major ETH Liquidation

ETHZilla (ETHZ), the Ethereum-based treasury management firm, has pivoted toward real-world asset tokenization with a $12.2 million acquisition of two CFM56-7B24 jet engines through its newly formed subsidiary ETHZilla Aerospace LLC. The move follows the company's $114.5 million ETH sell-off in Q4 2025, proceeds from which were earmarked for stock buybacks and debt reduction.

The engines are currently leased to a major airline under a managed agreement with AERO Engine Solutions, generating predictable cash flow. SEC filings reveal the deal includes a buy-sell option clause exercisable at $3 million per engine. This strategic shift comes as ETHZilla's stock languishes 97% below its August 2025 peak, with the company positioning itself as a bridge between physical assets and blockchain-based finance.

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