Ethereum is showing signs of stabilization after a sharp decline. ETH rebounded at a major support level, falling about 15.6% from its January high, and is currently trading around $2,950. The price trend of Ethereum still appears weak on the surface (down 11% weekly), but multiple signs are beginning to suggest a turning point.
The bearish momentum reset is complete, with aggressive buying by whales and a rapid recovery in network utilization occurring simultaneously. These signals raise important questions. Is Ethereum preparing for a stronger rebound, or will it remain a short-term bounce?
Volume divergence and whale entry, the decline phase is progressing.
Ethereum's recent weakness did not arise suddenly. From January 6 to 14, ETH showed bearish RSI (Relative Strength Index) divergence on daily charts. While the price updated its highs, the momentum indicator RSI declined, indicating a typical pattern that signifies the end of a trend.
This signal appeared clearly. Ethereum fell by approximately 15.6%, stabilizing after slipping into the support zone of $2,860.
What changed near the support is important.
Between January 20 and 21, when the price was on a downward trend, the On-Balance Volume (OBV) increased. This indicates that selling pressure has weakened and that large investors are absorbing supply. OBV is an indicator that tracks the flow of volume, and such divergences often appear near local bottoms.
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It seems that whales reacted to that change.
In the past 24 hours, Ethereum held by whales outside of cryptocurrency exchanges increased from 100,373,000 ETH to 100,408,000 ETH. This calculates to approximately 350,000 ETH accumulated in one day.
In current ETH price terms, the amount of this accumulation is over $1,030,000,000.
This indicates that whales did not accumulate at high prices. Buying occurred when momentum was reset and the main support was tested, viewing the adjustment not as a sell-off but as an entry opportunity. However, it seems that this motivation is not the only factor.
Ethereum regains the second position in unique address count per day.
It is not just the technical aspects that are improving.
As of January 23, Ethereum regained the second position in daily unique addresses (DUAs) behind BNB (according to BeInCrypto analyst's unique calculation). It surpassed SEI (Layer 1), which had recently been surging, to reclaim its position. However, the often-competitive opBNB (Layer 2 of BNB) still exceeds this.
The daily unique address count is not just price speculation but indicates actual network usage, making this recovery significant. While Ethereum's on-chain activity as Layer 1 has not reached past highs, it is showing signs of reactivation. SEI has been a strong competitor to Ethereum in recent years.
Furthermore, in terms of the growth of address numbers, Ethereum still surpasses the major Layer 2 ecosystems.
This recovery is starting to become a topic of discussion on social media.
Ethereum's social media dominance surged sharply from about 0.37% to 4.43% yesterday, briefly reaching around 5.8% before stabilizing. Historical trends have shown that localized peaks in social media dominance have preceded short-term increases in ETH. This timing coincides with whale purchases of over $1 billion in ETH.
For example:
On January 17, after a surge in local social dominance, Ethereum rose by 2.1% in several trades.
A similar surge occurred on January 21, resulting in a 3.4% increase within 24 hours.
This phenomenon does not guarantee an increase. However, past evidence shows that the recovery of the network's presence has led to short-term price increases. As of the time of writing, the return to the second position in L1 daily unique addresses also serves as a basis for attention.
The price level of Ethereum will be key going forward.
From here, Ethereum's structure is clear.
On the downside, $2,860 is an important support level. This level marks the endpoint of a 15.6% adjustment phase and the line where whales actively entered. If it clearly breaks below, the upward trend will retreat, and further lower support will be focused.
On the upside, ETH needs to break through $3,010. This level is 2.6% above the current price. If it clearly exceeds this, short-term strength can be confirmed. If the rise continues, the resistance zone of $3,350, which has capped prices since mid-January, will attract attention.
If it breaks above this level, the price of Ethereum could test further highs around $3,490 or $3,870. Conversely, if it falls below $2,860, a drop to $2,770 will be conscious, and the rebound scenario will be negated.
