Ethereum Price Outlook: ETH Targets $3,230 After January Monthly Sweep
Ethereum has already swept its January monthly open at $2,907, a key technical event that distinguishes its current structure from Bitcoin. This downside liquidity grab has shifted the short-term bias decisively bullish, reducing the attractiveness of immediate short positions and placing the focus on potential upside continuation.
With the monthly open already taken, market participants are now reassessing where risk and opportunity lie for ETH in the days ahead.
Key Market Structure Developments
Monthly Open Sweep and Bias Shift
ETH completed a clean downside liquidity sweep below the January monthly open before stabilizing. This move effectively cleared sell-side liquidity and weak-handed shorts, a process that often precedes trend continuation rather than immediate reversal.
As highlighted in the analysis, once the monthly open is swept, “max pain is clearly to the upside.” This structural shift discourages short entries at current levels and favors patience for higher-probability long setups.
Bullish Scenario One: Break Above $3,000
The first bullish scenario depends on a clear market structure break above the $3,000 high. A successful reclaim of this level would signal strength and open the path toward the $3,230 resistance zone.
The $3,230 level represents a prior reaction area where selling pressure previously emerged. As such, it is expected to act as the next major upside objective and potential decision point for price.
Bullish Scenario Two: Retest of $2,907
The second bullish scenario allows for another liquidity sweep below $2,907. If price dips into this zone and then shows a clear reversal, long positions become favorable again, with $3,230 remaining the upside target.
In both scenarios, the emphasis is on confirmation—either through a structure break or a post-sweep reversal—rather than anticipating moves prematurely.
Bearish Perspective and Risk Assessment
From a bearish standpoint, the analysis stresses that it is already late to pursue shorts at current levels. Short setups would only be considered if ETH first takes significant buy-side liquidity above $3,230 and then forms a clear bearish market structure break.
Without that sequence, downside continuation is viewed as lower probability, as the market has already addressed its primary downside liquidity objective.
Why This Matters
Ethereum’s price action reflects a market that has completed a key technical task by sweeping the monthly open. This changes trade selection, invalidates low-quality shorts, and increases sensitivity to price behavior around three critical levels: $2,907, $3,000, and $3,230.
How ETH reacts at these levels is likely to determine directional momentum for the remainder of the week.
Outlook
With sell-side liquidity cleared and short-term bias flipped bullish, Ethereum appears positioned for a continuation attempt toward $3,230. While volatility may increase near key levels, upside remains the higher-probability path unless buy-side liquidity is first taken and followed by a confirmed bearish shift.
English