Ethereum shows recovery potential despite recent volatility

PessimisticOracle · 2026-01-15T21:33:15+00:00

Ethereum has experienced a significant price drop but shows signs of recovery, with key support at $3,400 to $3,800 attracting long positions. Institutional investment is seen as a catalyst for a potential upward trend, aligning with historical price patterns that suggest a bullish fourth quarter.

PessimisticOracle

2026-01-15 21:33:15

Abstract generation in progress

After a significant price decline that depreciated Ethereum by more than 16% from its all-time highs, market analyses point to a possible upward movement in the coming weeks. The low was reached yesterday at $3,504, but since then, a remarkable counter-movement has been observed. Currently, ETH is trading at $3.30K with a 24-hour performance of -2.21%.

This rapid response to selling pressure aligns with Ethereum’s historical behavior pattern. The trend line, which has been emerging since August of this year, has repeatedly proven its stability. Three additional rebounds from the support zone between $3,400 and $3,800 indicate that this level remains attractive for long positions.

Institutional Participation as a Driver of the Rally

Crypto analyst Dan Gambardello sees growing institutional accumulation as the key signal for an upcoming upward movement. His risk model suggests that Ethereum could surpass its recent all-time high. The data supports this thesis: BitMine Immersion, a leading institutional player, holds a significant position with 2.8 million ETH.

In parallel, issuers like Bitwise and 21Shares have submitted applications to the SEC for Ethereum and Solana staking products. Approval could significantly alter the structure of crypto ETFs and their yield mechanisms, generating new capital inflows.

Historical Parallels and Outlook

Ethereum’s current consolidation phase resembles the pattern from August-September 2020, which also involved a steep downward movement followed by a recovery. At that time, this constellation led to a sustained bull trend over several months.

If this scenario repeats, the fourth quarter could be decisive for Ethereum. Fundstrat’s Tom Lee forecasts a price target of $5,500 or higher if market conditions remain favorable. With institutional support and regulatory catalysts in place, an exploratory upward trend in this phase seems quite realistic.

The coming weeks will show whether technical signals and fundamental indicators converge and lead Ethereum to new all-time highs.

ETH-0.43%

SOL-1.9%

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