Ethereum price has been quietly rebounding from its December lows. Since its low on December 18th, ETH has risen more than 10%, regaining the $3,000 area at the time of writing.
This movement is not random. The well-known bullish reversal pattern reappears on the chart, confirming the rally. The same setup caused a 27% rise earlier this quarter. But there’s a catch. That initial rally failed at a major resistance zone, and Ethereum is now heading back towards the same wall. What happens next will determine whether this rebound expands further or stalls.
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Bullish reversal returns when coin stops moving
The first signal comes from momentum. Between November 4th and December 18th, Ethereum price hit a new low.
During the same period, the RSI has made further new lows. RSI (Relative Strength Index) measures buying and selling momentum.
If the RSI improves even though prices are falling, it means that sellers’ power is weakening even though prices are still falling. This is called a bullish divergence and often triggers a trend reversal.
This very pattern also formed between November 4th and December 1st.
After this signal, Ethereum rallied nearly 27% before encountering resistance near $3,470.
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This time, momentum signals are reinforced by on-chain behavior.
The Spent Coins Age Band metric shows the number of ETH coins transferred between both old and new holders. When this indicator drops sharply, it means fewer coins are being used or sold and more coins are lying dormant.
On December 19th, spent coin activity reached nearly 431,000 ETH. By December 22nd, that number had decreased to 32,700 ETH. This is over 92% less coins being moved.
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Simply put, potential sellers of ETH have retreated significantly. Old holders are no longer making distributions and short-term traders are less active. This possible reduction in selling pressure helps explain why the RSI has stabilized and prices have recovered.
Important Ethereum Price Levels to Watch
Despite gaining momentum, Ethereum still faces significant resistance. The first immediate level of importance is $3,040. ETH needs to hold above this area to keep the rebound intact. A loss here would put the recent rally at risk.
Beyond that, $3,470 becomes a significant barrier, as mentioned above.
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This level was the upper bound of the last rally caused by the RSI divergence. If Ethereum fails again here, it will be rejected again and history will repeat itself.
The situation could change if there is a clean break and the daily close exceeds $3,470.
That would open the door to $3,660 and then $3,910, both of which have been key resistance zones since the beginning of the quarter.
Downside risks still exist. If Ethereum price falls by $2,940, selling pressure could return quickly. Below that, $2,770 is the next support, with $2,610 acting as deeper downside protection.
The point is clear. Ethereum rallied in a familiar bullish setup, supported by a sharp decline in coin spending. However, this rise still needs confirmation. Until we break through $3,470, this move will remain more of a rebound attempt than a complete trend shift.
