The doji candle warns about ETH at $3,300: reversal or deeper correction?

Ethereum faces a critical crossroads. With the price trading at $3,210 ( registering a 2.98% decline in the last 24 hours ), ETH has just formed an evening doji star pattern on its daily chart, a bullish formation that many traders interpret as a sign of exhaustion after the recent rally.

The doji candle pattern that halts the momentum

The sequence is clear: after a strong upward move that took ETH from late November lows to the $3,400-3,500 zone, a solid white candle appeared indicating buying interest. However, the following doji candle showed hesitation: the price opened and closed at nearly the same level, reflecting market indecision. The third candle completed the pattern with a decisive bearish close that retraced the previous advance.

This doji candle configuration is especially relevant because it shows that after the initial bullish impulse, buyers lost control. If ETH closes below the doji’s low and continues without reclaiming its recent high, the pattern would be fully confirmed, increasing the risk of a more severe correction.

The Fibonacci golden zone as a lifeline

Here is where the narrative gets complicated. Although the doji candle warns of weakness, ETH is precisely within the Fibonacci golden zone, a level that has historically marked trend changes after significant movements.

Current technical analysis places ETH between the 0.618 retracement ( approximately $3,224 ) and the 0.5 ( around $3,535 ). The price respects this support zone and has registered higher highs since the clean rebound from the demand zone of $2,877 to $3,048 a few weeks ago.

The crucial aspect is that ETH has recovered the short-term upward trend line. If the price manages to close daily above $3,310 ( where the 50-day EMA converges with the golden zone ), this would confirm that a reversal is underway. Such a close would position ETH above both the midpoint of the Fibonacci zone and the trend resistance, reinforcing the early recovery outlook.

Contradictory signals: RSI and volume give clues

The RSI stands at 54, indicating that momentum is shifting from oversold conditions toward a neutral-positive stance. This behavior is consistent with the start of a reversal, although it has not yet reached acceleration levels.

Volume remains steady and sustained rather than speculative, suggesting that any movement is building on real participation, not short-term emotional spikes.

What’s the next move?

Traders face two scenarios. If ETH convincingly surpasses $3,300 with momentum, the technical structure opens space toward $3,535. A confirmed close above this level would be decisive: it would confirm a full recovery from the retracement zone and could extend the move toward the previous resistance cluster near $3,850.

However, as long as ETH stays above the support band at $3,100, the doji candle pattern only warns that the bullish momentum is slowing, not that a trend reversal is guaranteed. A breakdown below $3,100 would significantly alter the outlook.

For now, the rebound along the trend line, support in the Fibonacci golden zone, and gradual improvement in momentum outline an early-stage trend recovery, although the doji candle keeps traders alert to the fragility of the current move.

Data: Ethereum is trading at $3.21K with a daily decline of 2.98% according to data updated as of January 19, 2026.