--- title: "Ethereum Price Nears Key Resistance Amid $4,000 Breakout Target" type: "News" locale: "en" url: "https://longbridge.com/en/news/271559819.md" description: "Ethereum (ETH) price is testing a critical resistance zone between $3,200 and $3,400 after rebounding from December lows. Analysts suggest that a breakout above $3,400 could lead to targets of $3,800 and $4,000, while a rejection may see a retest of $3,000 support. Futures positioning indicates a potential liquidity grab, with the price holding above $3,000. Historical data shows that previous poor Q4 performances have often been followed by strong Q1 and Q2 gains, supporting a bullish outlook for Ethereum in early 2026." datetime: "2026-01-05T20:40:43.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/271559819.md) - [en](https://longbridge.com/en/news/271559819.md) - [zh-HK](https://longbridge.com/zh-HK/news/271559819.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/271559819.md) | [繁體中文](https://longbridge.com/zh-HK/news/271559819.md) # Ethereum Price Nears Key Resistance Amid $4,000 Breakout Target _Image Source: Pixabay_ Ethereum (ETH) price has entered early 2026 trading near a decisive technical zone after rebounding from December lows. Price action is now testing a multi-month resistance band, with analysts weighing breakout potential against renewed downside risks. Market structure, futures positioning, and historical seasonality are shaping near-term expectations. ## Ethereum Price Tests $3,200–$3,400 Resistance Zone According to analyst Ted, the 10-day ETH price chart from mid-2025 to early 2026 reflects a prolonged period of consolidation. Multiple resistance levels between $3,300 and $3,800 have capped rallies for months. At the same time, support zones near $2,800 and $2,500 have consistently absorbed selling pressure. _(Click on image to enlarge)_ SOURCE: X Ethereum price recently rebounded from December lows near $2,800 and advanced toward the $3,200–$3,400 range. This area represents a critical pivot for market direction. A confirmed reclaim would indicate renewed trend expansion after months of range-bound activity. Moreover, a move above $3,400 could unlock upside toward $3,800 and $4,000. Such a move would require stronger volume than seen during recent sessions. Conversely, rejection from resistance may prompt another test of $3,000 support during thin January liquidity. Mid-term structure suggests Ethereum is digesting 2025 gains rather than distributing aggressively. A break with volume would confirm bullish continuation, while failure to reclaim resistance would keep price within the established range. ## Futures Liquidity Grab Signals ETH Price Test Meanwhile, analyst Lennaert Snyder analyzed the 4-hour ETH perpetual futures chart on MEXC. The chart shows a descending wedge breakdown followed by a sharp liquidity sweep above $3,250. This move cleared short-term stops before the price rotated lower. Despite the rejection wick, price has held above the $3,000 psychological level. Downside momentum has weakened, suggesting sellers lack follow-through. This behavior is typical during futures-driven liquidity hunts. _(Click on image to enlarge)_ SOURCE: X Additionally, holding above $3,100 remains key, as stability in this zone could support another push toward $3,300. A failure to hold would expose downside risk toward the lower range support. In addition, the presence of the monthly open below the current price adds technical confluence. Futures positioning often resets early in the year. Traders are closely watching volume for confirmation during volatile intraday sessions. ## Historical Returns Support Constructive Ethereum Price Outlook According to data shared by analyst Money Guru Digital, Ethereum’s quarterly returns show a notable seasonal pattern. Historically, red fourth quarters have often been followed by strong first and second quarters. Examples include 2017 and 2020, which delivered substantial gains after Q4 weakness. > Every red Q4 for $ETH has been followed by a green Q1 and Q2. > > Will history repeat itself? pic.twitter.com/U9KOjhFCZn > > — Money Guru Digital (@Moneygurudigi) January 5, 2026 Q4 2025 closed with a notable loss, aligning with this historical setup. Early Q1 2026 data already reflect modest gains. This supports the idea of a potential continuation phase rather than prolonged consolidation. Furthermore, Ethereum’s cycle behavior often aligns with broader market expansions. Previous red Q4 periods marked structural lows before sustained advances. Current data suggests a similar environment, assuming macro conditions remain stable. * * * _More By This Author:_ XRP ETFs See $1.37B In Assets As Issuers Battle For Top Position The Week Ahead: Jobs Report And Venezuela Developments Take Center Stage In Markets Carvana Stock Falls 5% Amid Insider Sale Filings ### Related Stocks - [Grayscale Ethereum Staking ETF (ETHE.US)](https://longbridge.com/en/quote/ETHE.US.md) - [ETH/HKD (ETHHKD.VAHK)](https://longbridge.com/en/quote/ETHHKD.VAHK.md) - [ETH/USD (ETHUSD.VAHK)](https://longbridge.com/en/quote/ETHUSD.VAHK.md) ## Related News & Research - [Where is Ethereum on its long journey?](https://longbridge.com/en/news/281540104.md) - [Ethereum Foundation doubles staked Ethereum, clearing two-thirds of 70,000 ETH target](https://longbridge.com/en/news/281652044.md) - [Did Bitmine’s MAVAN Ethereum Staking Push Just Shift Bitmine Immersion Technologies' (BMNR) Investment Narrative?](https://longbridge.com/en/news/281654982.md) - [Ethereum Faces Selling Pressure On Charts While Supply Remains Locked](https://longbridge.com/en/news/281263433.md) - [BitMine Completes Pier Two Acquisition, Expands Ethereum Staking](https://longbridge.com/en/news/281086447.md)