Triangle Support Faces $119M Liquidation Test

• Ethereum falls 2.25% to $3,208 but holds above the 20/50 EMA cluster at $3,165 to $3,187 as the symmetrical triangle structure remains intact.
• Derivatives markets see $119.45 million in long liquidations over 24 hours while trading volume surges 139%, reflecting aggressive repositioning.
• Spot exchange inflows of $21.91 million suggest that buyers are accumulating despite the selloff, creating a potential divergence with price action.

Ethereum price today trades near $3,208 after a 2.25% decline that tested the lower boundary of a multi-week symmetrical triangle. The drop triggered significant long liquidations, but spot flows paint a different picture as buyers step in to absorb the selling.

Long Liquidations Flush Leveraged Positions

Derivatives markets absorbed heavy damage in the past 24 hours. According to Coinglass, $119.45 million in long positions were liquidated compared to $36.49 million in shorts. That 3:1 ratio shows that leveraged bulls got caught as price broke below intraday support.

Open interest held relatively steady at $41.51 billion, up 0.84% despite the liquidations. Trading volume spiked 139.70% to $56.53 billion, indicating aggressive activity rather than passive selling. When volume surges alongside liquidations but OI holds, it often signals rotation rather than capitulation.

The long/short ratio sits at 0.95, showing a slight short bias among retail traders. Top traders on Binance remain net long at 2.34, creating a divergence that typically resolves with sharp moves in either direction.

Spot Inflows Create Bullish Divergence

Exchange flow data contrasts with the bearish price action. Coinglass recorded $21.91 million in net inflows on January 19, meaning that spot holders are moving ETH off exchanges into private wallets.

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When spot accumulation occurs during selloffs, it suggests that longer-term holders view the dip as an opportunity rather than a warning. This dynamic creates a potential floor under price even as short-term traders panic.

The pattern has repeated throughout January. Despite several pullbacks, spot flows have remained net positive on most sessions, building a base of accumulated supply that does not return to market during corrections.

Triangle Structure Holds At EMA Support

On the daily chart, Ethereum has traded inside a symmetrical triangle since the December low near $2,800. The pattern shows converging trendlines with price compressing between $3,100 support and $3,400 resistance.

Today’s candle tested the lower boundary but held above the 20 and 50-day EMA cluster at $3,165 to $3,187. The Bollinger Band lower boundary at $2,958 provides additional support if the triangle breaks.

Key levels now:

• Immediate support: $3,187 (20 EMA)
• Secondary support: $3,165 (50 EMA)
• Triangle support: $3,100
• Bollinger lower: $2,958
• Immediate resistance: $3,287 (100 EMA)
• Major resistance: $3,336 (200 EMA)
• Triangle upper boundary: $3,400

The structure remains neutral until one boundary breaks with conviction. A daily close below $3,100 confirms a bearish resolution and targets $2,800. A break above $3,400 signals bullish continuation toward $3,600.

Intraday Momentum Approaches Oversold

Shorter timeframes show the intensity of the selloff. On the 30-minute chart, price broke below an ascending channel that had guided the rally from $3,100 to $3,360.

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RSI dropped to 35.99, approaching oversold territory. MACD remains bearish with the histogram expanding to the downside, but such readings often precede stabilization attempts.

The broken channel support near $3,280 now acts as resistance. Any bounce attempt faces this level first before reaching the $3,336 zone where the 200-day EMA converges with the upper Bollinger Band.

Outlook: Will Ethereum Hold The Triangle?

The setup favors patience. Liquidations have cleared some leverage, spot inflows provide a bid, and the triangle structure remains intact. The next 48 hours will determine whether this is a shakeout or the start of a breakdown.

• Bullish case: Price bounces from the $3,165 to $3,187 EMA cluster and reclaims $3,280. A close above $3,336 breaks the 200 EMA and targets the triangle upper boundary at $3,400.
• Bearish case: A daily close below $3,165 breaks the EMA support and tests triangle lower boundary at $3,100. Losing $3,100 confirms the breakdown and targets $2,958 Bollinger support.

Ethereum sits at a decision point within its consolidation range. Spot accumulation suggests underlying demand, but the technical structure requires a hold above $3,165 to maintain the bullish case.

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