Ethereum: Can the $3,400 Level Withstand the Latest Moves from Whales and Institutions?

On January 7, 2026, Ethereum’s price increased significantly, reaching a critical resistance range between $3,200 and $3,400. The market finds itself at a crucial juncture, prompting the question: Will ETH break through this resistance, or is a pullback on the horizon?

Key Takeaways

Ethereum is facing a critical resistance zone at $3,200-$3,400.
James Wynn made headlines with a high-risk 25x leveraged long position in Ethereum.
Institutional investments, especially from BlackRock, have fueled recent bullish momentum, including a record $114M in ETH ETF inflows.
Liquidity clusters around the key resistance could either lead to a breakout to $3,800 or a pullback to $3,000.

Whales and Institutions Surround ETH: Will $3,400 Break?

High-Risk Moves in the Market: James Wynn's 25x Leverage on ETH

James Wynn is grabbing attention with his aggressive 25x leveraged long position on Ethereum. Before shifting his focus to ETH, he secured $87,594 in Bitcoin profits and boasts a floating profit of $172,000 from his $PEPE position, reflecting his bold strategy.

James Wynn's Position Source: Onchain Lens

Wynn's daring move underscores his faith in Ethereum’s potential, especially as it faces pivotal resistance levels. Such high-risk positioning indicates a wave of optimism among traders regarding the altcoin's future.

Fresh Capital Flow: $114 Million in Inflows

Ethereum has witnessed a surge in bullish momentum, largely due to record inflows of $114 million into Ethereum [ETH] ETFs on January 6. This notable increase in institutional investments, predominantly driven by BlackRock, has significantly bolstered Ethereum’s credibility in recent months.

ETH ETF Inflows Source: Ted Pillows

This spike in interest may signify the beginning of a greater market rally, with the potential to break key resistance levels.

Institutional Momentum: World Liberty Financial's Strategic Investment

Following Wynn's whale rotation, World Liberty Financial also made headlines with a remarkable purchase of Ethereum. They exchanged $2.5 million in Wrapped Bitcoin (WBTC) for 770 ETH, showcasing a growing trend of institutional capital flowing into Ethereum.

World Liberty Financial's strategic acquisition reflects a positive market sentiment, suggesting that ETH might be poised for further price growth. An increase in institutional participation is typically considered a bullish signal for this cryptocurrency.

Analyzing Key Resistance Levels: Will it be $3,800 or $3,000?

At the time of this report, Ethereum's price positioned itself at a vital juncture, with liquidity clusters consolidating around the $3,200-$3,400 resistance area.

ETH Liquidation Heatmap Source: CoinGlass

Failure to triumph over this range may trigger a decline towards the $3,000 mark. Indicators such as the Relative Strength Index (RSI), currently at 61.72, are suggesting overbought conditions, while the Moving Average Convergence Divergence (MACD) readings show encouraging positive momentum.

ETH Price Chart Source: TradingView

If a breakout occurs, Ethereum's price could rise to $3,800; however, there is also a possibility of a reversal should resistance hold firm.

Final Thoughts

Ethereum is standing at a crucial crossroads, with influential players making significant moves that could impact its trajectory. The upcoming days will be essential in determining whether ETH can break through the $3,400 resistance or if it faces a retracement.