January 26 2026 Author: Moty Levanon
The digital asset market is currently providing a masterclass in Technical Analysis and Market Structure. Ethereum ETH is sitting at a decisive crossroads where harmonic precision meets institutional volume profiles. After a period of sustained volatility the price action has reached a level that demands undivided attention from professional traders.
The Harmonic Perspective and the Precision of Point D
Our primary thesis centers on a massive Harmonic Pattern that has been developing over the recent sessions. The beauty of these patterns lies in their mathematical symmetry and Ethereum has respected these boundaries with remarkable accuracy.
The price recently completed a sharp corrective leg toward the $2,826 zone. This specific level represents the 0.786 Fibonacci retracement and the terminal Point D of our harmonic structure. In technical terms this is the Potential Reversal Zone PRZ where supply typically exhausts and demand begins to aggregate.
Point X: The Line in the Sand
While Point D provides the entry trigger the true structural integrity of this setup rests on Point X. During the recent dip the market witnessed a high stakes battle at this level. Sellers attempted to push the price below the origin of the pattern but were met with significant resistance.
The fact that Point X held firm despite the bearish momentum is a major bullish signal. If the price had crossed below this point the entire harmonic thesis would have been invalidated. Instead we saw a surgical touch of the support followed by a stabilizing price action.
Volume Profile and the Absorption of Supply
To understand why the price halted exactly where it did we must look at the Volume Profile. The current data shows a significant High Volume Node HVN or Point of Control POC situated much higher at the $3,000 mark.
As the price descended toward the $2,800 range it entered a Low Volume Node. Usually this leads to a fast break but the Order Flow revealed a different story. We observed a phenomenon known as Absorption. While the Delta showed aggressive market selling the price failed to create new lows below Point X. This indicates that institutional "Passive Buyers" were sitting with large Limit Orders absorbing every sell contract thrown at them.
Future Scenarios and Targets
The market has effectively "cleansed" the weak hands. With the successful defense of the structural lows the path of least resistance now points toward a retest of the value area.
Our first major objective is a return to the $3,000 POC. This level will act as a magnet for price as it represents the fairest value where the most significant trading activity has occurred. A sustained break above this zone could signal the start of a new impulsive leg while a failure to reclaim it would suggest a longer period of consolidation.
Conclusion
The current setup on Ethereum is a textbook example of why we combine Harmonic Patterns with Volume Profile. The math told us where the price should stop and the volume told us that the big players were indeed there to catch it. We remain observant of the $2,800 support as the definitive pivot for the coming weeks.
Legal Disclaimer
This analysis is provided for educational and informational purposes only and does not constitute financial investment or trading advice. Trading digital assets involves significant risk and the potential for total loss of capital. Past performance is not indicative of future results. The author is not a licensed financial advisor and any decisions made based on this content are the sole responsibility of the reader. Always conduct your own due diligence and consult with a professional before engaging in financial markets.
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