Ethereum USD Slides 1.94% Daily: Can $2,600 Support Level Hold?
Ethereum USD is trading at $3,277.70 as of January 16, 2026, down 1.94% over the past 24 hours. The second-largest cryptocurrency by market cap faces pressure as traders reassess positions following recent volatility. With a market cap of $396.5 billion and trading volume at 405.9 million, ETHUSD shows mixed signals across technical indicators. Understanding why Ethereum USD is sliding requires examining support levels, market sentiment, and upcoming catalysts that could influence price direction in the coming weeks.
Why Ethereum USD Is Sliding Today
Ethereum USD declined 1.94% in the last 24 hours, reflecting broader market consolidation after recent gains. The cryptocurrency gained 6.66% over five days and 10.98% monthly, but profit-taking has emerged as traders lock in gains. Trading volume sits at 405.9 million, below the 28 billion average, suggesting reduced conviction among buyers.
Regulatory developments and stablecoin debates are weighing on sentiment. Senate discussions around stablecoin interest restrictions and crypto market structure bills create uncertainty for Ethereum-based applications. Additionally, the broader crypto market is consolidating after Bitcoin’s push toward $100,000, with investors rotating capital across different assets.
Ethereum USD Technical Analysis
RSI at 49.07 indicates neutral momentum with no overbought or oversold conditions present. The indicator sits in the middle range, suggesting balanced buying and selling pressure without extreme positioning.
MACD shows a bullish signal with the histogram at 29.38 and signal line at -26.88, indicating potential upside momentum building beneath the surface. The crossover structure suggests buyers may be regaining control despite the daily decline.
ADX at 24.43 reflects a weakening trend, just below the 25 threshold that signals strong directional movement. This suggests the current downtrend lacks conviction and could reverse with increased volume.
Bollinger Bands position shows price at $3,277.70 trading above the lower band at $2,771.08 and below the upper band at $3,245.91. The middle band sits at $3,008.50, providing a key equilibrium level for mean reversion traders.
Ethereum USD Price Forecast
Monthly Forecast: $2,582.26 represents a -21.2% decline from current levels, suggesting downside risk if support breaks. This target aligns with the lower Bollinger Band and would test buyer conviction at key psychological levels.
Quarterly Forecast: $3,472.03 implies a +5.9% gain over three months, indicating recovery potential as regulatory clarity emerges. This level sits above the 200-day moving average at $3,641.92, suggesting consolidation before sustained upside.
Yearly Forecast: $3,721.34 projects a +13.5% annual gain from current prices, reflecting moderate bullish sentiment for 2026. This target aligns with historical support from the 200-day average and suggests Ethereum USD could stabilize above current levels.
Disclaimer: Forecasts may change due to market conditions, regulations, or unexpected events.
Market Sentiment and Trading Activity
Trading volume declined to 405.9 million from the 28 billion average, indicating reduced participation and lower conviction among traders. This compression often precedes directional breakouts once volume returns to normal levels.
Liquidation data shows mixed positioning with no extreme short or long concentration. The Money Flow Index at 61.91 suggests moderate buying pressure, though not at levels indicating capitulation or euphoria. Recent news about Ethereum treasury firms accumulating ETH and potential regulatory clarity in 2026 provides some support for longer-term holders.
Support and Resistance Levels for Ethereum USD
Key support at $2,771.08 marks the lower Bollinger Band and represents the monthly forecast target. Breaking below this level would signal deeper weakness and test the 50-day moving average at $3,057.50.
Resistance at $3,245.91 aligns with the upper Bollinger Band and the day’s high of $3,324.83. A break above this zone would target the 200-day moving average at $3,641.92 and open the door to quarterly forecast levels near $3,472.
Year-to-date performance shows +9.65% gains despite recent weakness, confirming that Ethereum USD remains in an uptrend on longer timeframes. The year high of $4,953.73 remains 51% above current prices, providing a long-term target for bullish scenarios.
Final Thoughts
Ethereum USD trades at $3,277.70 with a 1.94% daily decline, reflecting consolidation within a broader uptrend. Technical indicators show neutral momentum with RSI at 49.07 and weakening trend strength via ADX at 24.43. Support at $2,771.08 and resistance at $3,245.91 define the near-term trading range. Price forecasts suggest downside risk to $2,582.26 monthly but recovery potential to $3,472.03 quarterly and $3,721.34 yearly. Market sentiment remains cautious due to reduced trading volume and regulatory uncertainty around stablecoins. Ethereum USD’s year-to-date gain of 9.65% confirms the longer-term uptrend remains intact. Traders should monitor volume expansion and regulatory developments as key catalysts for the next directional move. The cryptocurrency’s $396.5 billion market cap and strong ecosystem fundamentals support medium-term recovery scenarios if support levels hold.
FAQs
Ethereum USD declined due to profit-taking after recent gains and reduced trading volume. Regulatory uncertainty around stablecoin interest restrictions and Senate crypto bill discussions also weighed on sentiment. Broader market consolidation as Bitcoin approaches $100,000 contributed to the pullback.
The primary support level sits at $2,771.08, marked by the lower Bollinger Band. The 50-day moving average at $3,057.50 provides secondary support. Breaking below $2,771 would signal deeper weakness and test longer-term trend support.
The quarterly forecast of $3,472.03 is achievable if volume returns and regulatory clarity emerges. This level aligns with the 200-day moving average and represents a 5.9% gain from current prices. Resistance at $3,245.91 must break first.
RSI at 49.07 indicates neutral momentum with no overbought or oversold conditions. This suggests balanced buying and selling pressure without extreme positioning, leaving room for movement in either direction.
Ethereum USD remains in a longer-term uptrend with year-to-date gains of 9.65%. The daily decline is consolidation within this uptrend. ADX at 24.43 shows weakening trend strength, suggesting a potential reversal or breakout soon.
Disclaimer:
Cryptocurrency markets are highly volatile. This content is for informational purposes only. The Forecast Prediction Model is provided for informational purposes only and should not be considered financial advice. Meyka AI PTY LTD provides market data and sentiment analysis, not financial advice. Always do your own research and consider consulting a licensed financial advisor before making investment decisions.
