On the evening of January 8th, ETH experienced a significant plunge, directly breaking through the psychological level of 3100, with a low of 3067.78. This sharp decline caught many traders who had positioned around 3100 off guard. However, from a technical perspective, this oversold condition actually signals several potential opportunities.

Based on hourly and 4-hour chart observations, I’ve identified some key levels that could influence the market direction tomorrow morning to share for your reference.

**Short-term signals on the 1-hour chart**

Looking at the 1-hour chart, a large bearish candle directly broke through the previous consolidation support level. The 5-day and 10-day moving averages have already formed a death cross, exerting clear downward pressure. Currently, the price is weakly consolidating below 3100, but there’s a detail worth noting — the RSI indicator has fallen to 28, entering the typical oversold zone.

According to common technical rules, when RSI enters such deep oversold territory, the probability of a technical rebound tends to increase. In other words, the current price movement may not be far from a "bottom area."

Key levels to watch: 3100 as a break point, the 5/10-day moving average death cross resistance, and RSI at 28 indicating oversold conditions.

**Mid-term logic on the 4-hour chart**

Zooming out to the 4-hour timeframe, the mid-term trend becomes clearer. ETH has been declining from the recent high of 3226.58, later breaking below the middle band support of the Bollinger Bands (3168.37). The MACD green bars are also continuously expanding, indicating that the bearish momentum in the mid-term is still releasing.

However, there is a very important support zone: 3070-3050. This range is not arbitrary; it is a critical position that previously served as a launch point for the upward move, demonstrating strong support historically. Based on the current trend, it’s unlikely to be deeply broken, and this zone may serve as the "bottom line" for this decline.

Key levels to watch: 3226.58 as the recent high, 3168.37 as the middle band break level, and 3070 as a strong support zone.

**Market rhythm for tomorrow morning**

From a broader perspective, ETH’s recent decline appears more like a "technical correction" rather than a fundamental trend reversal. The bullish factors in the fundamentals have not disappeared, nor have any clear bearish news emerged.

Looking at a 1-2 week cycle, this sharp drop might actually present a good opportunity for low-cost accumulation. Such volume-driven rapid declines often form bottom structures near key support levels.

**Two key levels that will determine tomorrow’s trend**

Stabilizing above 3150: If ETH can hold above 3150 tomorrow, it indicates that the correction is essentially over, and the upward trend could restart. The next target could be the previous high around 3226.

Dropping to 3050: Conversely, if the price continues downward to the 3050 zone, it could be the "golden pit" for medium-term accumulation. For spot holders, this might be a relatively bold opportunity to scale in gradually.

**Summary**

A sharp decline itself isn’t the most frightening part; what’s more concerning is a slow, gradual decline. This volume-driven rapid sell-off tends to reach bottom quickly. If you hold spot positions, it’s advisable to stay steady. For short-term traders aiming to catch rebounds, paying close attention to the performance around these two key levels — 3070 and 3150 — is essential.