Ethereum Analysis for January 1: Strategies to Avoid Further Pullback

Summary:
Ethereum (ETH) begins the new year with a steady price, aiming to break through vital resistance levels to avoid a pullback. Serving as a pivotal moment, the performance of ETH in January could shape its trajectory for the coming year.

Key Takeaways

Ethereum's price remains steady at $2,974, with minor fluctuations within the range of $2,959 to $3,012.
Weekly gains show a 1.0% increase, while a 4.8% rise is noted over the last 14 days.
Key technical levels are identified, including resistance at $2,990 and support at $2,963.
Ethereum achieved a record of 8.7 million contracts deployed in a single quarter, indicating robust growth.

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Current Price Performance

As the new year unfolds, Ethereum's price holds steady with no change over the last 24 hours, trading at $2,974. The price has remained within a range of $2,959 to $3,012, showing some consolidation as it faces resistance near the $3,000 mark.

In a broader perspective, Ethereum marked a 1.0% increase over the past week and a more promising 4.8% rise over the last two weeks. However, the flat trend observed in the last day hints at a temporary lack of strong momentum. As we welcome 2026, Ethereum’s ability to surpass key resistance levels and capitalize on its recent gains will be critical. The question remains: will ETH have a powerful start, or will it continue to face challenges within its current price range?

Analyzing Technical Indicators

Examining the technical charts, ETH is currently moving within a narrow band defined by the lower and upper Bollinger Bands, positioned at $2,963 and $2,990. The price action indicates that ETH is consolidating in the middle of this range, reflecting a period of indecision among traders. Immediate resistance is found at the upper Bollinger Band close to $2,990, which might limit short-term gains.

Ethereum 1-Hour Price Analysis

On the downside, the key support level is identified at the lower Bollinger Band near $2,963. If Ethereum cannot maintain its position above this point, the price could fall further towards $2,940 or lower.

The Relative Strength Index (RSI) shows a neutral market sentiment, currently around 49.83, indicating potential for more positive momentum. Achieving a bullish breakout would require Ethereum to sustain a climb above $2,990, while also holding above the crucial support level of $2,963 to prevent a more significant pullback.

Notable Contract Milestone for Ethereum

In other developments, Ethereum has achieved a significant milestone as noted by analyst Joseph Young. He reported on social media that the network has reached an all-time high of 8.7 million contracts deployed in a single quarter.

Ethereum Contracts Deployed

This remarkable growth over multiple quarters in contract deployment suggests resilient expansion within the Ethereum ecosystem. Key contributors to this growth include advancements in roll-ups and Layer 2 solutions, the introduction of real-world assets, the rising use of stablecoins, and an expanding base of wallets and user intents.

Disclaimer: This article is intended for informational purposes only and should not be interpreted as financial advice. The views expressed herein are the author's own and do not necessarily represent those of The Crypto Basic. Readers are urged to conduct their own research before making any financial decisions. The Crypto Basic assumes no responsibility for any financial losses.