Ethereum Price Fails Key Breakout as Symmetrical Triangle Caps Upside

Source: CryptoNewsNet Original Title: Ethereum Price Fails Key Breakout as Symmetrical Triangle Caps Upside  Original Link:

Price Movement and Market Context

The Ethereum price dips 3.94% during Wednesday’s U.S. market hours to currently trade at $3,168. The selling pressure likely came as a reset following broader market recovery investors witnessed during the first seven days of 2026. While the discount signals risk of prolonged correction in price, institutional investors show higher conviction in ETH.

Key Technical Observations

• The Ethereum price drives a short-term consolidation trend resonating within the formation of a symmetrical triangle pattern.
• A notable spike in open interest associated with Ethereum futures contracts, indicating a renewed speculative force in price.
• The ETH price is holding below the 100-and-200-day exponential moving averages, suggesting the asset’s long-term trend is bearish.

Institutional Buying Offsets Short-Term Weakness

In the first seven days of 2026, the Ethereum price witnessed a notable recovery from $2,902 to its recent swing high of $3,307, registering a 13.26% gain. The upswing aligned with broader crypto market recovery, as Bitcoin attempted to reclaim the $90,000 mark.

However, the post-recovery pullback has pushed ETH to $3,169, creating concerns in retailers’ minds of whether the correction trend is still intact. Even with Ethereum’s value slipping to around $3,148 after a 3.88% drop, major financial entities are ramping up their holdings in the asset.

On-chain tracking reveals that World Liberty Financial has withdrawn 162.69 Wrapped Bitcoin units valued at $14.98 million from a lending protocol. Part of that, 27.12 WBTC worth $2.5 million, was then exchanged for 770.6 ETH coins.

Meanwhile, major asset managers have joined the buying spree in recent days, acquiring significant Bitcoin and Ethereum units. This activity reflects the sustained interest of large-scale buyers despite the fluctuations of the market.

In addition, the open interest tied to ETH’s futures contract has recorded a notable spike in early 2026. The OI value has rebounded from $36 million to $42 billion since last week.

This indicates capital inflow into derivatives markets is rising, indicating expectations of higher price volatility ahead.

Consolidation Pattern and Breakout Analysis

Over the past two months, the Ethereum price showcased a consolidation trend resonating within two converging trendlines. This dynamic resistance and support led to the formation of a well-known continuation pattern: the symmetrical triangle.

The chart setup typically emerges after a directional trend, allowing market participants to recuperate exhausted momentum before the next move. On Tuesday, the Ethereum price attempted a bullish breakout from the pattern’s upper boundary. However, the breakout failed and the price re-entered the triangle range.

The momentum indicator Relative Strength Index (RSI) dropped to 56%, accentuating a slight slowdown in bullish market momentum.

This fake breakout should accelerate selling pressure and push ETH price 7.15% down to hit the bottom trendline at $2,939. A potential bearish breakdown below this support would further intensify the decline and push Ether to challenge $2,600.

On the contrary, an upside breakout from above the 200-day EMA will signal a bullish turnaround in ETH coin.