Ethereum Price Eyes a Bullish Breakout as $3076 Support Holds Amid Positive Funding Rate

Highlights:

• The Ethereum price is down 3% to trade at $3,226, as the crypto market flips bearish.
• The bearish sentiment comes as Donald Trump claimed he will impose tariffs on eight European countries that have resisted his proposal to annex Greenland. 
• The technical outlook shows Ethereum price eyes a bullish breakout as long as the $3076 support zone holds

On Monday, the Ethereum (ETH) price fell by 3% to $3,226, as the crypto market flipped red. The falling price is reinforced by the escalating trade war between the European Union (EU) and the United States of America (US). Moreover, technical analysis and derivatives markets indicate a potential bullish breakout if ETH holds above $3076 support, as the funding rate is positive.

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The rising trade war between the US and the EU is hurting overall market sentiment and straining risky assets, prompting more than 800 million in liquidations.

Over 800M got Liquidated within Last 24Hrs. 🫠 pic.twitter.com/ONCT8iZOWb

— CryptoDoc (Gem Hunter💎) (@cryptodoc_) January 19, 2026

The US President, Donald Trump, claimed that he will impose tariffs on eight European countries that have resisted his proposal to annex Greenland. Trump has revealed a 10% tariff on products from Denmark, Sweden, France, Germany, the Netherlands, Finland, the United Kingdom, and Norway. This will begin on February 1 and continue until the US has the option to purchase Greenland. These increased trade tensions led traders to go risk-off, which is not a positive indicator for risky assets like Ethereum.

Breaking: Trump announces 10% tariffs on 8 European countries starting February, rising to 25% in June, until Denmark agrees to sell Greenland

Countries:
🔵 Denmark
🔵 Norway
🔵 Sweden
🔵 France
🔵 Germany
🔵 UK
🔵 Netherlands
🔵 Finland pic.twitter.com/4SQbQ9pXOc

— OSZ (@OpenSourceZone) January 17, 2026

According to data from Coinglass, the OI-Weighted Funding Rate shows that the number of traders betting on a fall in ETH’s price is lower than those betting on a rise.

The measure has moved into positive territory, currently at 0.0021% on Monday. Such a positive rate implies that shorts are paying long, signalling a slight bullishness in ETH.

Ethereum Price Eyes a Bullish Breakout as $3076 Support Holds

The ETH price broke down from its recent breakout above $3,300, with sellers quickly pushing it to the current levels at $3,226. The key support at $3,076, which aligns with the 50-day SMA, is holding strong, and the 200-day SMA at $3,659 acts as strong resistance.

The altcoin is currently trading within a rising parallel channel, as the Ethereum price eyes a bullish breakout as the $3,076 support level holds. This area saw strong buying interest and could attract new buyers if prices stabilize.​

Key indicators still point to a bullish outlook for Ethereum. The Relative Strength Index (RSI) sits around 55.35, indicating that ETH is neutral but still has room for further upside. The MACD indicator (Moving Average Convergence Divergence) is bullish, with the blue MACD line above the orange signal line and both in positive territory, highlighting the dominance of buyers.​

If the price fails to hold above $3,076, further losses towards $2,800 could come swiftly. Meanwhile, according to popular crypto analyst Ali Martinez, ETH needs to hold above $3085 to have a chance of a bullish breakout.

$3,085.

That’s the level Ethereum $ETH needs to hold to have a chance of a bullish breakout. https://t.co/W9cA0qcRgM pic.twitter.com/tmS88G0lhQ

— Ali Charts (@alicharts) January 19, 2026

For now, the outlook for ETH remains cautious. Short-term dips may provide opportunities for brave buyers, but the trend remains positive as long as the altcoin stays above support at $3076.

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