Ethereum Price Prediction: January 2026 Outlook

Author: Alejandro Arrieche

Published: January 2, 2026

Key Highlights

• Ethereum (ETH) has seen a 3.6% increase in the last 24 hours, reaching nearly $3,100.
• Historically, ETH has averaged a 47% gain in January during years it closed positively.
• Open interest in ETH futures is rising, currently at 13.4 million ETH, indicating increased trader participation.
• ETH must maintain a price above $2,800 to avoid significant declines, with a target of $3,900 if it surpasses $3,300.

Market Sentiment and Technical Analysis

As of early January 2026, market sentiment around Ethereum is improving, with the Fear and Greed Index recovering from a low of 11 to near neutral levels. This shift suggests that panic selling has subsided, and traders may be preparing to re-enter the market.

Open interest in ETH futures has increased from 10.9 million ETH in mid-October to 13.4 million ETH, although it remains 12.4% below its peak in July. This uptick in open interest is a positive sign, indicating renewed interest among traders, despite the price being over 37% below its all-time high.

Price Levels to Watch

Ethereum's price action has been closely monitored around the 100-week exponential moving average (EMA). The price recently found support at $2,800, a critical level that could indicate a potential bear trap. If ETH can break above $3,300, it may initiate a rally towards $3,900, which is seen as a short-term ceiling.

However, if the price falls below the $2,800 support level, a bearish scenario could unfold, potentially driving ETH down to $1,600 in the near term.

Conclusion

Ethereum's performance in January 2026 will be crucial, as historical data suggests a favorable outcome if the month starts positively. Traders should keep a close eye on key price levels and market sentiment to navigate potential volatility in the coming weeks.