At the beginning of 2026, the crypto market has somehow come alive, and it is noticeable. Bitcoin is holding steady above 94 thousand dollars, and Ethereum has already crossed 3300, which hints at a possible bullish surge. The main signal here is the double bottom pattern, which is visible on the daily chart. I think this is a classic for a trend reversal, although not everything always works out perfectly.
This pattern has been forming since last year. Support levels have withstood pressure from sellers several times, and this indicates that the buyers there are strong. If the formation is completed, the target could be around 3900 dollars. Not just a bounce, but an exit from a long decline, as it seems to me.
But there is also an obstacle, the 200-day EMA. Experts say that Ethereum needs to consolidate above it for everything to be confirmed. Since November of last year, it has tried to break through twice, but it didn’t work out, and new sales followed. A breakout of this line could end the bearish cycle and launch a real recovery. This is the part that seems key, but I’m not sure how quickly everything will move.
To understand the picture more fully, let’s look at the fresh news around Ethereum. Investments in spot ETH-ETFs grew by 15 percent in a week; large funds are increasing their positions, waiting for records like Bitcoin’s. They are also discussing the Pectra 2 network update, tests are almost finished, and this should reduce fees on the second level and attract more DeFi projects as early as the first quarter. The share of staking is at a maximum, coins are leaving exchanges, which, with demand, can create a shortage. And today, US inflation data came in lower than expected, which is boosting risky assets like crypto.
In general, Ethereum is at an important stage, the trend may continue. If it overcomes the 200-EMA, then 3900 will not be the limit, but just a step toward greater heights this year. Although, of course, everything could go differently—this is the market.
This article provides information and is not financial advice or a recommendation to invest.