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Ethereum seems to be stabilizing after a strong correction. ETH is trading near $2,950 after retreating about 15.6% from January highs before breaking key support. While the price action of Ethereum still seems weak on the surface (down 11% per week), several fundamental signals suggest that conditions may be changing.
A complete reset of bearish momentum, aggressive whale accumulation, and a surprising recovery in network usage are now beginning to grow. Together, these signals raise an important question: Is Ethereum ready for a stronger rebound, or is this just a short-term rebound?
The collapse of the subsidence is evident as the sound diverges and the whales intervene
Ethereum’s recent weakness did not appear suddenly. Between January 6 and January 14, ETH registered a bearish trend in the Relative Strength Index (RSI) on the daily chart. While the price pushed higher, the RSI, a momentum indicator, formed a higher high, a setup that often indicates the exhaustion of the trend.
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That signal was executed cleanly. Ethereum corrected around 15.6%, sliding to the $2,860 support area before stabilizing.
What changes in support is important.
As prices trended lower (between January 20 and January 21), the break-even volume (OBV) formed a higher low, indicating weak selling pressure and larger buyers absorbing supply instead of exiting. The OBV traces the volume flow, and this type of branching often appears near a local bottom.
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The whales seem to have reacted to this change.
In the last 24 hours, it has increased The actions of Ethereum held by whales (excluding exchanges) from 103.73 million ETH to 104.08 million ETH. This means adding about 350,000 ETH in one day.
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At the current price of ETH, this accumulation is worth just over $1.03 billion.
This indicates that the whales did not buy the top. They intervened after the reset of the moment and tested the key support of the price, and considered the correction as an entry rather than an exit. But this may not be the only reason.
Ethereum regained second place in daily unique addresses, beating SEI
The technical configuration is not the only thing that improves.
As of press time on January 23, Ethereum has recovered 2nd place in Tier 1 DUA Addresses (Daily Unique Addresses) behind BNB, as determined only by BeInCrypto analysts. It has just surpassed SEI (another top level), which has seen strong activity recently due to an increase in gaming. opBNB (the second layer to BNB), another frequent competitor, is still higher.
This is important because unique daily addresses reflect actual network usage, not price speculation. Ethereum regaining this position indicates that the activity on the chain as layer 1 is recovered even when the price remains below the recent highs. SEI has been a long time enemy of Ethereum.
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Furthermore, Ethereum still outperforms all major Layer 2 systems in terms of address growth.
This recovery has already begun to transform into the social conversation.
Ethereum’s social dominance has jumped sharply from about 0.37% to 4.43% since yesterday, for a short peak near 5.8% before cooling off. Historically, spikes in local social dominance precede short-term price rallies for ETH. This is the same period in which the whales raised more than $1 billion in ETH.
For example:
- On January 17, an increase in local social dominance was followed by a corresponding increase of 2.1% in profits over the following sessions.
- On January 21, a new high was preceded by an upward movement of 3.4% in 24 hours.
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This does not guarantee a rally, but it shows that the renewed importance of the network has been translated earlier in the tracking of short-term prices. The return to second place in the daily unique titles (at the time of publication) provides a key reason for increased interest.
Ethereum price levels now hold the key
From here, Structure of Ethereum Clear.
On the upside, $2,860 remains crucial support. This level represents the end of the 15.6% retracement and is where the whales come in strong. A clean loss of this area will weaken the bullish case and open a trend towards lower support.
On the upside, ETH needs to clear $3,010, a level only 2.6% above the current price, to confirm short-term strength. A sustained move higher would bring $3,350 into the focal point, a resistance zone that has defined the price since mid-January.
If this level is broken, the price of Ethereum can target the higher extension near $3,490 and $3,870. However, failure to hold $2,860 will return the focus to $2,770, invalidating the rebound hypothesis.
