Ethereum (ETH) Risks Dumping Another 40% if This Key Level Is Lost

Ethereum (ETH) is trading around $2,900, down 1% over the last 24 hours and more than 10% weekly. Several days ago, ETH fell below the $3,000 level and recently tested support near $2,700–$2,800. It has yet to recover with strength.

Breakdown Pattern Raises Risk

Analyst Trader Tardigrade shared a 3-day chart showing a bear flag forming on Ethereum. This pattern is characterized by a sharp drop and is usually followed by further downside. The asset is now breaking below the lower support of the flag.

The post notes that Ethereum must close above $2,906 soon to avoid a larger drop. “It has 1 day and 19 hours to reclaim above $2,906 to avoid this breakdown,” the analyst wrote. If the breakdown holds, the target is around $1,666 based on the earlier move.

$ETH/3-day#Ethereum is breaking down from a Bear Flag, targeting $1,666 🤯
⏰ It has 1 day and 19 hours to reclaim above $2,906 to avoid this breakdown. pic.twitter.com/1Q5XZjg1qP

— Trader Tardigrade (@TATrader_Alan) January 26, 2026

Another analyst, Ted, posted that Ethereum is trading flat near $2,900 after a strong selloff earlier. Open interest is rising, reaching 5.255 million, showing more positions are being opened despite the sideways price.

Funding remains slightly positive at 0.0011, but it has dropped, showing cooling interest. “Old degens got liquidated, and now new ones have arrived,” the post added. The rise in open interest while the price holds steady could mean traders are preparing for the next move.

ETH/BTC Pair at Key Area

Michaël van de Poppe, founder of MNF Fund, shared a chart of ETH against Bitcoin. ETH/BTC is holding a support level that has been important before. The price is sitting in a higher timeframe zone, though it is now below the 21-day moving average.

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“It would be enormously important to be holding this level,” van de Poppe said.

If the support holds, ETH could gain against BTC. If not, the chart points to lower levels ahead.

Meanwhile, CW pointed out that the current ETH price range matches previous whale accumulation zones. “The current price is an attractive range for Ethereum whales,” they noted. The realized price of large accumulation wallets is close to the current level.

However, data from analyst Ali Martinez shows a steady drop in whale holdings since early January. Ethereum ETFs have also posted losses recently. Price weakness and reduced holdings suggest caution remains across larger accounts.