The price of Ethereum has quietly recovered from its lowest point in December. Since its drop on December 18, ETH has risen more than 10% and has returned above the 3,000 USD mark, while news reports continue.
This movement did not happen by chance, as a familiar bullish reversal pattern has appeared again on the chart, confirming the rebound. This pattern previously triggered a price surge of 27% earlier this quarter. However, there is a caveat that the previous rise had stopped at a key resistance level, and now Ethereum is heading back to the old resistance. Whether this recovery will extend or decline depends on what happens next.
The bullish reversal is back when the coin stops moving.
The first signal arose from momentum between November 4 and December 18, with Ethereum making new lows lower than before.
During the same period, the RSI made a new higher low. RSI or Relative Strength Index is an indicator of buying and selling strength.
When the price drops but the RSI improves, it means that the selling side is starting to weaken even though the price is still falling. This is called bullish divergence, which often leads to a reversal of the trend.
This pattern also occurred between November 4 and December 1.
After receiving that signal, Ethereum has risen nearly 27% before hitting resistance near 3,470 USD.
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This time, the momentum signal is also supported by behavior on the blockchain network.
The Spent Coins Age Band indicator shows how many ETH coins have been moved by both new and old holders. If this number drops sharply, it means fewer coins are being spent or sold, while most coins remain stagnant.
On December 19, the coin movement activity was around 431,000 ETH, but on December 22, this number dropped to 32,700 ETH, representing a decline of more than 92% from the moved coins.
Simply put, those who might sell ETH have quickly pulled back. Old holders are no longer spreading coins, and short-term traders are less aggressive. This reduction in selling pressure may be the reason why the RSI index has stabilized and the price has recovered.
Important Ethereum price levels to watch.
Even though the trend direction is starting to improve, Ethereum still faces significant resistance, with the first level to watch being 3,040 USD, which ETH needs to maintain if it wants this rebound to continue. If this level is lost, the previous recovery may risk being overturned.
Above, the level of 3,470 USD is an important resistance wall as mentioned above.
At this level, the rebound was extracted from the previous round that started from RSI divergence. Therefore, if Ethereum fails at this point again, history may repeat itself with another rejection.
But if the price can break and close daily above 3,470 USD, the overall picture may change.
If that is the case, it will open the way to a target of 3,660 USD followed by 3,910 USD, both of which are important resistance points from the previous quarter.
The downside risk remains. If Ethereum falls below 2,940 USD, selling pressure may return quickly, and if it goes below that, 2,770 USD will be the next support, while 2,610 USD is a deep support that will help prevent further declines.
Therefore, the conclusion is clear: Ethereum rebounded with a familiar upward pattern combined with reduced coin spending. However, this round is still waiting for confirmation. If it cannot break above 3,470 USD, the movement still counts as just a rebound attempt, not a full trend change.
