Ethereum (ETH) has recently demonstrated strong technical resilience by successfully testing the 21-day moving average, a key support level that traders closely monitor for signs of trend continuation. According to crypto analyst Michaël van de Poppe, this test held firm, signaling potential for an ongoing uptrend in ETH's price action. With consistent inflows into Ethereum exchange-traded funds (ETFs) providing fundamental support, the market appears poised for upward momentum. This development is particularly noteworthy for traders eyeing ETH/BTC pairs, where the first significant resistance zone is identified around 0.036 to 0.037. As of early January 2026, this analysis highlights opportunities for bullish positions if support levels remain intact.

Ethereum's Technical Setup and Support Test Analysis

In the realm of cryptocurrency trading, Ethereum's interaction with its 21-day moving average serves as a critical indicator of market health. The recent test at this level, as noted on January 6, 2026, showed ETH bouncing back effectively, preventing a deeper correction and reinforcing buyer confidence. Traders often look for such support holds to confirm uptrend continuations, especially when paired with positive on-chain metrics like increasing ETF inflows. These inflows, which have been steady, suggest growing institutional interest, potentially driving ETH's price higher against both USD and BTC. For instance, if ETH maintains above this moving average, it could target the resistance at 0.036-0.037 in the ETH/BTC ratio, a level that has historically acted as a barrier during previous rallies. Volume data from major exchanges during this period would likely show elevated buying activity, underscoring the strength of this support test.

Impact of ETF Inflows on ETH Price Momentum

One of the driving forces behind Ethereum's potential uptrend is the constant influx of capital into ETH-based ETFs. This institutional flow not only boosts liquidity but also enhances market sentiment, making ETH an attractive asset for long-term holders and short-term traders alike. As ETF investments continue, they contribute to reduced selling pressure and could propel ETH towards higher price levels. In trading terms, this translates to opportunities in spot markets and derivatives, where leverage can amplify gains from an uptrend continuation. Keep an eye on trading volumes spiking during key hours, such as UTC trading sessions, which often correlate with ETF-related announcements. If inflows persist at current rates, ETH might break through the 0.036 resistance, opening doors to further gains and possibly influencing correlated assets like altcoins tied to Ethereum's ecosystem.

From a broader market perspective, Ethereum's performance ties into overall crypto sentiment, especially with Bitcoin's dominance in play. The ETH/BTC pair's resistance zone at 0.036-0.037 represents a pivotal point; a breakout here could signal ETH outperforming BTC, attracting more capital rotation from Bitcoin holders. Traders should consider multiple pairs, including ETH/USDT and ETH/USD, to gauge cross-market dynamics. On-chain metrics, such as active addresses and transaction volumes on the Ethereum network, further support this bullish outlook, showing increased activity that aligns with the ETF inflow narrative. However, risks remain if global economic factors introduce volatility—monitoring support retests will be essential. For those positioning trades, setting stop-losses just below the 21-day MA could mitigate downside, while targeting take-profits near the resistance zone offers a balanced risk-reward ratio.

Trading Strategies for ETH Uptrend Continuation

To capitalize on Ethereum's potential uptrend, traders might employ strategies focused on the identified support and resistance levels. A swing trading approach could involve entering long positions upon confirmation of the 21-day MA hold, with initial targets at the 0.036-0.037 ETH/BTC zone. Incorporating indicators like RSI and MACD can help validate momentum; for example, an RSI above 50 during the support test would reinforce bullish signals. Additionally, tracking 24-hour price changes and trading volumes across exchanges provides real-time context—hypothetically, if ETH sees a 5% daily gain with volume exceeding average, it strengthens the case for continuation. Institutional flows into ETFs act as a catalyst, potentially leading to sustained rallies, so staying updated on inflow reports is crucial. In summary, this setup presents compelling trading opportunities, blending technical analysis with fundamental drivers for informed decision-making in the volatile crypto market.

Overall, Ethereum's recent market behavior underscores its robustness amid evolving crypto landscapes. By integrating technical tests with ETF-driven fundamentals, traders can navigate potential uptrends effectively. As always, diversifying across pairs and monitoring key metrics ensures resilient strategies. (Word count: 728)