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Ethereum traded near $3,112 as 2026 started. It showed a 0.50% intraday decline on a four-hour ETHUSDT chart shared by BullifyX on X, where structure and system mechanics frame the market. This price action came after a strong January rally into the $3,240–$3,280 region and then a pullback. However, network conditions improved as Ethereum’s validator exit queue cleared after a four-month congestion.
Together, the chart and network update show a market defined by established levels, orderly rotation, and normalized staking operations rather than short-term speculation.
The January scenario emerged after a prolonged late-December base, during which Ethereum managed to defend lower demand zones constantly. It later supported an impulsive move higher. This context places the current pullback within a broader framework influenced by support, resistance, and trend structure.
The chart identifies $3,180–$3,200 as a major resistance zone where repeated tests previously met supply, producing rejections that capped advances during recent sessions. Above that area, a higher resistance near $3,390 aligns with a prior swing high, forming a clear ceiling from earlier market structure. These overhead levels continue to guide expectations for upside attempts as price consolidates below them.
On the downside, immediate support appears near $3,057, which price is currently testing following the pullback from January highs. Below that level, stronger structural support sits around $2,991, matching a former consolidation area that transitioned into a breakout. A broader gray demand zone between $2,800 and $2,900 marks the base for the latest impulsive rally and remains untested during the current retracement.
A rising trendline extending from late December into early January connects a series of higher lows formed after the December drawdown, indicating sustained accumulation rather than distribution. Despite recent volatility, Ethereum remains above this ascending support, keeping the broader bullish structure intact within the observed timeframe. The pullback therefore reflects corrective behavior following a steep advance rather than a break in trend.
BullifyX added a projected path suggesting a brief dip toward the $3,050–$3,000 region, where liquidity may concentrate before price resumes upward momentum. The projection implies renewed strength once support absorbs selling pressure, consistent with prior reactions at nearby levels.
Beyond price action, Ethereum’s validator exit queue has returned to normal after four months of congestion that began in September. The backlog formed after Kiln removed its entire validator fleet following a hack that exploited a vulnerability in its staking infrastructure. At its peak, the queue delayed staking withdrawals for several weeks, creating operational challenges for staking platforms.
Those delays affected protocols that stake Ether for users in exchange for fees, as prolonged exit times increased uncertainty around redemptions. Kirill Kutakov, co-founder of Stakewise, told DL News that liquid staking tokens now face a lower risk of trading at discounts. Markets price duration risk when exit queues lengthen, since buyers must wait longer to redeem tokens for the Ether they represent.
With the queue cleared, redemption timelines have shortened, reducing duration risk across staking products and restoring normal conditions. This normalization coincides with Ethereum trading above key structural supports, aligning network stability with the orderly price behavior shown on the chart.
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Ethereum price action stays technically structured near key support and resistance levels while the validator exit queue returns to normal. The cleared backlog reduces staking risk and supports liquid staking stability. Together, chart structure and network normalization signal a market driven by order, liquidity, and system reliability.
