Investing in ETHUSD up to $3,170 on US-EU trade relief

The ETHUSD pair has recently faced a sharp test of sentiment, decisively breaking below the key $3,000 psychological support to touch lows near $2,970. This plunge came amid institutional exchange-traded fund (ETF) withdrawals and a spike in geopolitical uncertainty, driven by Donald Trump's renewed trade threats against Europe. Such a combination ignited a broad flight from risky assets across financial markets, making the speculative nature of cryptos a prime target for the sell-off. However, investor mood reversed later in the week when the White House shelved its tariff plans, thus easing tensions and reviving appetite for exposure.

Beneath these volatile surface waves, Ethereum's fundamental foundation is quietly fortifying. Heavyweights are now making strategic moves: Bitmain acquired $105.5 million worth of the token, while a mystery whale accumulated $179 million in ETH in just 14 days. The aggressive buildup by insiders signals their belief in the asset's long-term worth, which transcends its price fluctuations in the short run. 

Equally telling is the crypto's steady flow out of centralized exchanges, where balances have hit a multi-year low not seen since 2016. This resilient shift into cold storage suggests that large holders are embracing a long-term keeping strategy. By effectively withdrawing liquidity from the market, this trend sets the stage for a steeper price hike once demand accelerates.

On the technical front, the pair shows tentative signs of finding a floor after the sharp descent, even though strains endure. The Chaikin Oscillator, having breached its January 20 low, is now trending upward, revealing that selling pressure is waning and buying interest is stirring. Such a shift is bolstered by rising trading activity in the current zone. Meanwhile, the Relative Strength Index (RSI) has just climbed from an oversold 36 to a more neutral 43, confirming that bullish momentum is recovering. In summary, although ETHUSD is still in a corrective phase, key indicators—from on-chain accumulation to technical momentum—suggest that the groundwork for an uptrend or consolidation is being laid out.

Here's a plan you might want to check out for your own trading activities:

Buy ETHUSD at the current price. Place Take profit at $3,170. Set Stop loss at $2,930.

This forecast holds true from January 22 till January 29, 2026.