Ethereum Price Holds Key Support as ETH Eyes Potential Early 2026 Rally

Ethereum is currently trading close to a critical support level, which keeps the market vigilant about its upcoming move. The upcoming move for Ethereum in the short run would greatly depend on its reaction to significant resistance points. A possible rally may emerge soon, but further decline may happen first.

Ethereum Nears Critical Support Level

A well-known crypto analyst, More Crypto Online, explains that the current position of Ethereum is near an essential level of support on the weekly chart. This level has always symbolized a possible starting point for the growth on previous occasions. Although the growth may occur soon, it is also rather likely that ETH may see another slight decrease in early next year.

Source: X

However, the main point of interest is still the resistance level overhead. What will happen when Ethereum reaches this point will probably establish which market trend has importance over the others. Currently, the possibility of a rise and a fall is still equally valid, and there is no confirmation of the trend yet.

The price actions in and around these key levels will be very important in establishing what the outlook may be for the first part of 2026. Although these charts do not provide clear answers at present, they are establishing what the criteria would be for a clear picture to emerge.

Also Read | Ethereum Tests $3,120 as Bulls Eye Higher Resistance at $3,700

Ethereum Monthly BX Signals Bounce

Moreover, market analyst Peter DiCarlo also observed that ETH/USD recently closed dark red on the Monthly BX indicator for the first time in a year. It can be remembered that every time this occurred in the past, there was a sell-off period of about four months for Ether before it finally bottomed.

Source: X

DiCarlo proposes that ETH might experience a short-term relief rally in the upcoming weeks, and then sales will resume at a better entry level. He further stated that if the Monthly BX indicator turns positive again, he will consider it a positive market.

At the time of writing, Ethereum (ETH) is trading at $3,184.2, with a 24-hour trading volume of $25.13 billion and a market capitalization of $385.12 billion. The ETH saw a modest increase of 1.09% over the last 24 hours.

Source: CoinMarketCap

With supporting choices holding but with resistance on the horizon, it seems that Ethereum is at a crossroads. The next few weeks will determine the outlook for the beginning market trends of 2026.

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