Ethereum (ETH) Sees Breakout as Bulls Defend the $3.2K Level

Ethereum holds $3,200 after a clean trendline retest, with rising volume, strong on-chain data and $4K targets now back in sight.

Daily trading volume has risen sharply and now stands at over $27 billion, up 128% from the previous day. ETH has risen between $3,190 and $3,360 over the past 24 hours and continues to rise 3.3% this week. It is currently 35% below the peak of $4,950 reached in August 2025.

Retesting remains almost short-term support

Ethereum’s break above the descending trendline earlier this month was followed by a measured pullback. That trendline now acts as support next to the 20-day moving average. Analyst BATMAN described the setup as a “solid retest”, noting that ETH is moving as expected.

So far, Ethereum is playing exactly as I expected.

Currently, it is retesting its previous bearish trendline, with additional support from the 20-day MA.

Solid retest setup from here $ETH https://t.co/PN7m8Fssq5 pic.twitter.com/H3TWbyumNY

— BATMAN ⚡ (@CryptosBatman) January 19, 2026

The price action remains steady around $3,200. As long as this area holds, a return to the $3,400 level remains on the table. If the asset breaks below that, short-term momentum may decline, but the overall structure is still intact for now.

Additionally, Ethereum recently crossed its 50-day moving average and remained above it, indicating near-term strength. Analyst StockTrader_Max say the next logical level is the 200-day moving average, currently around $3,650.

The current chart structure suggests the potential for continued upside. A possible Elliott Wave count suggests ETH may form a third wave, with a projected target near $4,000. This outlook depends on the asset position above the support between $2,980 and $3,085.

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Activity on Chain reflects growing interest

Glassnode data shows an increase in network usage. The number of daily active addresses has doubled in the past two weeks, now above 800,000. At the same time, Ethereum-based ETFs have added more than 158,000 ETH since December 29, an inflow worth more than $500 million.

The strongest buying occurred between $2,770 and $3,100. Analyst Ali Martinez declared,

“$3,085 – that’s the level Ethereum needs to hold to have a chance of a bullish breakout.”

As previously reported, staking participation has reached a new all-time high and wallet activity continues to rise. These trends indicate steady growth on the network, even as pricing remains within a wide range.

In just over two months, ETH has made sideways moves between 2,600 and 3,400. A volume-supported break above $3,400 could open the $3,660 option and even 4,000 if momentum continues.