Ethereum Crosses Key Roadblock – What’s Next?

In Brief

• Ethereum has broken above the key $3,000 resistance again, offering a fresh opportunity.
• Analysts say a sustained daily close above this level is needed to confirm further upside.
• Stronger volume and improving network fundamentals are supporting optimism.

Shedrach Kongvong 2026-01-02

Ethereum has been moving back and forth in a trading range it has failed to come out of. The $3,000 level is at the top of this range, and rising above it has been difficult. The coin just broke above the resistance again today, and market participants are waiting to see what happens next.

According to renowned crypto analyst Ted Pillows, this break can only be sustained if Ethereum succeeds in getting a daily close above this level. This will ensure a rise to higher price levels in the range of $3,200 – $3,400. However if it fails, the rally will be delayed further with no certain end in view.

$ETH has broken above the $3,000 level.

Now, Ethereum needs a daily close above this zone for upward continuation.

If ETH dumps below the $3,000 level again, the sideways chop will continue. pic.twitter.com/KP3MuQTKHk

— Ted (@TedPillows) January 2, 2026

Ethereum Faces Critical Decision Point

Ethereum has struggled to hold above $3,000, although it has broken the level several times in the last ten months. The weak market momentum has been responsible for this inability, despite strong network fundamentals that should ordinarily propel the asset. Another break therefore presents Ethereum with a critical decision moment that can define its price action in the near term.

This time, the breakout is supported by much more volume in addition to other network fundamentals such as staking ratio which has reached 35 million. Now, all that is required is a daily close above the level which will then open the door to higher price levels. Currently trading at $3,055, some analysts believe the coin is in safe territory.

However, the outcome today still depends on Bitcoin’s price action as is usually the case. Fortunately, Bitcoin is also seeing a rally today, currently trading at $89,690. If it succeeds in breaking and staying above $90,000, the price is likely to climb higher, which means altcoins including Ethereum could continue in their upward push.

If this happens, Ethereum could see a rally of 15-20% in the coming weeks. Such a pump will take the price to the $3,200 t0 $3,400 level and higher, placing ethereum on a safe path to some real price action.

Ethereum’s Rally Potential Gets Boost

While the price of Ethereum suffered, the network has been building capacity for greater days. This is revealed in the quick rise in active address count and the recent 2.2 million daily transactions.

Though these fundamentals did not translate to price in 2025, they could bring the much needed boost in 2026 when a catch up rally is anticipated for the crypto industry after the 2025 gold and silver rally.