The Ethereum price has quietly recovered from its lows in December. Since the bottom on December 18, ETH has risen more than 10% and reclaimed the area around $3,000 now.
This movement is not coincidental. A well-known positive reversal pattern has appeared again on the chart, confirming the rise. The same pattern previously provided a rise of 27% earlier in the quarter. But there is a limitation. The previous rise stopped at an important resistance area, and now Ethereum is approaching the same level again. Whether this recovery continues or halts depends on what happens next.
Strong upward rebound as coins stop moving.
The first sign comes from momentum. Between November 4 and December 18, the Ethereum price made a lower low.
During the same period, the RSI made a higher low. RSI, or Relative Strength Index, measures the strength of buyers and sellers.
When the price drops but the RSI improves, it means sellers are losing strength even as the price falls. This is called positive divergence, and it often leads to trend reversals.
Exactly this pattern was also formed between November 4 and December 1.
After that signal, Ethereum rose almost 27% before the price faced resistance near $3,470.
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This time, the chain behavior also reinforces the momentum signal.
The metric Spent Coins Age Band shows how many ETH coins are moving between new and old holders. When this metric decreases sharply, it means fewer coins are being spent or sold, and more are remaining dormant.
On December 19, the activity was nearly 431,000 ETH. By December 22, that number had dropped to 32,700 ETH. This is a decrease of over 92% in coins that are moving.
Simply put, potential ETH sellers have quickly pulled back. Older holders are no longer distributing, and short-term traders are less active. The possible reduction in selling pressure helps explain why the RSI has stabilized and the price has recovered.
Key price levels for Ethereum to watch.
Even though momentum is improving, Ethereum still faces significant resistance. The first level that is important is $3,040. ETH needs to stay above this area for the recovery to continue. If the price drops this level, the entire rise risks disappearing.
Above that, $3,470 is the important level mentioned earlier.
That level ended the recent rise based on RSI divergence. If Ethereum fails here again, history will repeat itself with another rejection.
A clear breakthrough and daily close above $3,470 can change the situation.
It could open up to $3,660, followed by $3,910. Both are important resistance levels from earlier in the quarter.
Downside risk remains. If the Ethereum price drops below $2,940, selling pressure can quickly return. Below that, $2,770 becomes the next support, and $2,610 serves as deeper protection on the downside.
The summary is clear. Ethereum has recovered thanks to a well-known positive pattern and a significant reduction in coin spending. But this trend still needs confirmation. If $3,470 is not broken, this remains just a recovery phase and not a clear trend shift.
