Ethereum’s latest selloff is colliding with some of the strongest structural tailwinds the network has seen in years.
Ethereum (ETH), the world’s second-largest cryptocurrency, traded around $2,800 on Thursday, down more than -6% over 24 hours and at risk of closing a fifth straight month in the red.
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Why Is Ethereum Struggling After the $3,500 Rejection Despite Whale Accumulation and Long-Term Bullish Signals?
The slide follows a failed breakout above the $3,400–$3,500 zone in late January that reversed into a roughly 16% correction, even as large holders added more than 1M ETH to their balances.
On-chain data show that this area hosted over $4Bn in “break-even” supply, while more than $600M in net outflows from spot ETH ETFs flipped institutional flows from support to headwind.
Spot ETH ETFs have grown their holdings to nearly 12M ETH, or around 10% of supply, despite price underperformance in 2025.
As per Grayscale research, 2026 is likely to bring “rising valuations” as regulatory clarity deepens links between traditional finance and public blockchains, with Ether a core “alternative monetary asset.”
Some macro analysts also point to a recurring global-liquidity pattern that preceded a 226% ETH rally in 2021 and appears to be forming again.
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Ethereum Price Prediction: Why Is ETH Trapped in a Range as Analysts Warn of Rejections?
Ethereum continues to drift inside a wide consolidation band, with clear resistance near $3,350 and support around $2,600, as shown in Sjuul’s chart.
Price action reflects a sideways market marked by repeated rejections at the top of the range and a “bullish deviation” signal near the lows.
$ETH remains in this seemingly endless range.
There's not much to do in the middle.
Either wait for a proper breakout above $3350 or for a dip to the range low.
Remember, money is made in the waiting! pic.twitter.com/gJy0rZlrHY
— Sjuul | AltCryptoGems (@AltCryptoGems) January 29, 2026
The structure shows no decisive trend, only compressed movement between well-defined boundaries.
A breakout above $3,350 would confirm strength, while a dip toward $2,600 may offer the next reaction zone. “ETH remains in this seemingly endless range… money is made in the waiting,” the analyst said.
Another crypto analyst, Crypto Tony, expressed his outlook for Ethereum.
As per his analysis, Ethereum continued to trade under pressure as short-term price action stayed capped below a key resistance zone.
This is a range I am looking for on Ethereum. Rejections from the $2,850 high and I will look for shorts down pic.twitter.com/U4TowvVBKL
— Crypto Tony (@CryptoTony__) January 29, 2026
On the 15-minute chart, ETH rejected the $2,850 area and failed to reclaim the mid-range, keeping the structure tilted lower.
The move followed a sharp selloff, with the price consolidating in a tight range between roughly $2,780 and $2,840.
Lower highs and repeated rejections suggest sellers remain in control, while the recent bounce looks corrective rather than impulsive.
A brief push higher could still act as a liquidity sweep before continuation lower.
Crypto analyst Crypto Tony said, “This is a range I am looking for on Ethereum. Rejections from the $2,850 high, and I will look for shorts down.”
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Key Takeaways
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On-chain data show that this area hosted over $4Bn in “break-even” supply, while more than $600M in net outflows from spot ETH ETFs flipped institutional flows from support to headwind.
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Ethereum continues to drift inside a wide consolidation band, with clear resistance near $3,350 and support around $2,600, as shown in Sjuul’s chart.
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