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Ethereum entered a decisive phase on the monthly chart as the price traded near $3,221 on January 6, 2026. A long-term TradingView chart shared on X by analyst Karagulle mapped Ethereum’s structure against Tether on Binance since 2018. The chart showed Ethereum locked between two major horizontal levels while respecting a rising diagonal trendline.
This setup framed Ethereum price behavior as compression continued. Market participants now tracked whether price could escape this multi-year range or remain confined.
The TradingView chart identified $4,940 as a long-term resistance level that repeatedly capped upside momentum. Ethereum failed at this zone during the 2021 bull cycle and again during rallies in 2024 and 2025. Each approach toward $4,940 met selling pressure, confirming the area as a structural ceiling. Red arrows on the chart marked these historical rejections.
The graph placed critical support at $1,775. Ethereum rebounded from this level during several deep corrections following cycle peaks. These rebounds aligned with touches of the rising diagonal trendline that originated near the 2019 bottom. Green arrows marked these recoveries, signaling persistent demand near trend support.
The interaction between horizontal resistance and support zone created a tightening price corridor. Ethereum maintained higher lows while failing to secure a monthly close above resistance. This compression suggested growing pressure within the structure as time advanced into 2026.
Karagulle described the setup as Ethereum’s “tomography” based on the monthly timeframe. He stated that $4,940 and $1,775 acted as the core “castle” levels defining Ethereum’s medium- and long-term range. According to his description, these levels controlled directional outcomes.
He explained that a confirmed break above $4,940 would signal an aggressive upside expansion. In contrast, a breakdown below $1,775 would invalidate the rising structure entirely. Karagulle labeled this downside scenario a “coffin formation,” reflecting the severity of a structural failure.
Ethereum price prediction remained between these boundaries at press time. The midpoint position showed balance between buyers and sellers. The chart extended projections into 2026 and beyond, showing that resolution may define Ethereum’s next multi-year trend.
Separate market data added short-term context to the long-term structure. Ethereum’s liquidity heatmap showed dense clusters around the $3,000 level. These clusters suggested a strong interest and positioning near support. A revisit to this zone appeared possible if resistance between $3,200 and $3,400 continued to hold.
Derivatives data revealed a large leveraged position that raised market risk. An Ethereum whale reportedly opened a $63 million short position using 3x leverage. This position carried a liquidation price near $4,545, placing it close to the long-term resistance zone.
Momentum indicators also reflected growing tension. The price chart showed strong resistance between $3,200 and $3,400. The Relative Strength Index reached 70.60, signaling overbought conditions. Meanwhile, the MACD showed weakening bullish momentum, suggesting reduced upside strength. Could Ethereum break free from its multi-year range before leverage and liquidity dynamics force resolution?
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Ethereum price remains compressed between $4,940 resistance and $1,775 support on the monthly chart. Liquidity clusters near $3,000, and heavily leveraged shorts add pressure. Momentum indicators show strain near resistance.
Market participants now watch for a decisive breakout or breakdown that could define Ethereum’s next long-term move.
