Ethereum (ETH) Price Prediction: Ethereum Starts the New Year at $2,950 on Bullish Path with Weekly Flag Breakout

After a volatile end to 2025, Ethereum has stabilized above key support levels, showing signs of consolidation that could pave the way for a strong rally. Analysts are closely monitoring price action, trading volume, and weekly chart formations for confirmation of the next upward move.

Ethereum Begins 2026 with Consolidation Near $2,950

Ethereum started the New Year trading around $2,950, maintaining support after recent volatility. This follows a brief false breakdown, creating a higher low that could support potential bullish momentum in the near term.

Ethereum (ETH) shows a macro bull flag in play, eyeing a potential breakout toward $7K. Source: @Bitcoinsensus via X

According to Bitcoinsensus, Ethereum’s weekly chart shows a macro bull flag in play, with a measured move targeting roughly $7,000. This pattern is based on a prior upward pole spanning roughly $4,000, reflecting Ethereum’s recovery from 2022 lows to its 2024 highs.

“The weekly structure suggests that ETH is forming the right setup for a potential breakout, though trading volume remains a key factor to watch,” noted the market analyst.

Among the multiple bullish indicators, the weekly flag carries the most analytical weight. Lower-timeframe patterns like Elliott Wave counts and EMA signals are more sensitive to short-term volatility and serve as confirmation rather than primary drivers.

Technical Analysis Highlights Bullish Patterns

Recent assessments also point to inverse head-and-shoulders formations and Elliott Wave patterns. If ETH clears resistance near $3,500, it could surge toward $7,600, though this assumes volume and market conditions support continuation.

Ethereum (ETH) is consolidating on the 2-day chart, gearing up for a potential 2026 bull market. Source: @THEFLASHTRADING via X

Flash Trading (@THEFLASHTRADING) provided an Elliott Wave analysis on the 2-day chart, showing a completed five-wave impulse from mid-2025 lows (~$2,000) to highs (~$4,800), followed by a corrective A-B-C wave concluding around $2,400 support.

“This pattern frames the recent pullback as corrective rather than trend-ending, aligning with a potential 2026 bull market surge,” the analyst explained.

Elliott Wave analysis is subjective, and interpretations can differ across analysts. Weekly flags historically take weeks to resolve, and breakout timing is sensitive to trading volume and broader market trends.

Key Support Levels and Breakout Zones

As of December 31, 2025, Ethereum remains above critical support near $2,950. Analysts note that a decisive break above the downtrend line near $3,200 would confirm bullish momentum.

Ethereum (ETH) shows bullish momentum near $3,400, but traders await a clear EMA breakout before entering. Source: SwallowAcademy on TradingView

TradingView analyst SwallowAcademy commented, “Monday started off bullish, indicating a potential entry around $3,400. EMA levels will guide us, and we won’t enter long positions without a clear breakout.”

Large targets like $7,000–$7,600 depend on sustained support and favorable market conditions. A loss of the $2,400–$2,500 support zone would invalidate the current bull-flag thesis and delay any higher-target scenarios.

Looking Ahead: Preparing for the 2026 Bull Market

Market watchers remain cautiously optimistic for Ethereum in 2026. The weekly bull flag is the primary signal to monitor, while Elliott Wave patterns and EMAs provide secondary confirmation. Short-term traders should focus on breakout zones in early Q1, whereas long-term holders will want to track whether ETH continues forming higher weekly lows throughout the quarter.

Ethereum was trading at around 2,969, up 0.87% in the last 24 hours at press time. Source: Ethereum price via Brave New Coin

Key confirmation lies in the $3,200–$3,500 range, while a breach below $2,400–$2,500 would invalidate the current bull-flag thesis. As ETH traders ring in the New Year, attention remains on these resistance zones and the potential to challenge $7K targets, signaling a significant milestone in the upcoming bull cycle.