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The price of Ethereum has quietly recovered from its December lows. Since the December 18 low, ETH has risen more than 10%, recovering the $3,000 region, at the time of writing.
This movement is not random. A familiar bullish reversing pattern has reappeared on the chart, confirming the jump. The same ranking led to a 27% rally earlier this quarter. But there is a problem. That previous rally failed at a key resistance zone, and now Ethereum is headed for the same wall. Whether this rebound extends or stops depends on what happens next.
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The bullish reversal returns as currencies stop moving
The first signal comes from the momentum. Between November 4th and December 18th, the price of Ethereum hit a new low.
During the same period, the Recurrent Harmony Index achieved a higher level of decline. The Relative Strength Index (RSI) measures buying and selling momentum.
When the price has fallen, but the RSI indicator is improving, it means that the sellers are losing steam even if the price continues to fall. This is called a bullish divergence, and it often causes trend reversals.
This exact pattern is also formed between November 4 and December 1.
After that signal, Ethereum rose By about 27% before facing resistance near $3,470.
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This time, the momentum signal is reinforced by the cascading behavior.
The spent coin age indicator shows the number of ETH coins being transferred between new and old holders. When this indicator drops drastically, it means that fewer coins are spent or sold, and that more of them remain inactive.
On December 19, the coin activity reached about 431,000 ETH. By December 22, this number had dropped to 32,700 ETH. This represents a decrease of more than 92% in the currencies moving.
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In simple terms, step back ETH sellers potential suddenly. Older holders no longer distribute, and short-term traders are less aggressive. This potential reduction in selling pressure helps explain why the RSI stabilized and the price recovered.
Ethereum price levels are critical to monitor
Even if the momentum improves, Ethereum still faces significant resistance. The first important immediate level is $3,040. ETH must stay above this zone to keep the rebound intact. A loss here would jeopardize the recent rebound.
Above that, $3,470 is the key wall, as mentioned earlier.
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This level was capping the last rally triggered by the Relative Talisman Divergence. if Ethereum has failed Here again, history will repeat itself with another rejection.
A clean break and the end of each day above $3,470 can change the picture.
This opens the door towards $3,660, followed by $3,910, which are two major resistance areas from the beginning of this quarter.
There is also downside risk. If the price of Ethereum loses $2,940, selling pressure could quickly return. Below that, $2,770 becomes the next support, with $2,610 as a deeper protection.
The conclusion is clear. Ethereum recovered in a familiar bullish pattern, supported by a sharp drop in currency spending. But this growth still needs to be confirmed. Until it breaks $3,470, the move remains a recovery attempt, not a complete change in trend.
