Ethereum (ETH) is hinting at another reversal. Over the past month, Ethereum price has fallen by approximately 1.9%, but has rebounded modestly by 2.1% over the past seven days as traders attempt to recover lost ground.
Still, the overall tone is still slightly negative. Previous rallies have failed to develop into full rallies and have repeatedly been capped at key technical levels. Now, the on-chain data is changing again and another rebound is forming, but this one looks more convincing.
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Whales added, dormant holders increasing
The Spent Coins Age Band, an indicator that tracks how much ETH moves between wallets of all ages, has fallen from 346,000 ETH on October 22nd to just 42,100 ETH on October 25th, an 88% decrease in movement volume.
This means the coins remain uncirculated, a strong sign that dormant holdings are increasing and holders are showing renewed confidence. Both short-term and long-term investors appear to be waiting for prices to rise before rotating assets.
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Spent Coins Age Band shows the total amount of ETH moved across the age band. When it falls, fewer coins are coming out of the wallet, indicating increased dormancy, which is often a bullish sign.
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At the same time, the total holdings of whale addresses holding more than 10,000 ETH increased. In the past 24 hours, they increased their stash from 100 million ETH to 156 million ETH. This would be a net profit of 150,000 ETH, equivalent to approximately $588 million at current ETH prices.
This combination of rising dormancy and fresh whale accumulation forms a stronger foundation for Ethereum. Historically, when fewer coins move on the chain and large holders buy them, prices tend to stabilize and prepare for the next major bull market.
One indicator keeps Ethereum reversal theory intact
The Relative Strength Index (RSI), which measures the balance between buying and selling pressure, continues to show signs that Ethereum’s downtrend may be losing momentum.
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From September 25th to October 22nd, the RSI made higher lows and the price made lower lows, forming a bullish divergence indicating a possible reversal. Similar divergences occurred on October 10th and October 17th, both of which led to short-term rebounds.
But this time, the supporting on-chain data appears to be stronger, suggesting the setup could eventually evolve into something bigger.
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Fibonacci still defines Ethereum price reversal path
Despite improving technicals, Ethereum price remains trapped below a key resistance zone that has repeatedly limited any pullbacks. The 0.382 Fibonacci level at $3,986 and the 0.618 level at $4,281 rejected two consecutive upward attempts, including on October 10th and October 17th.
To see true strength, ETH needs a daily close above $4,281, which is about 9% above current levels. This marks the first clear change in market dominance and will likely set targets at $4,491 and $4,954.
If the breakout fails and ETH falls below $3,804, further decline towards $3,509 is possible. But for now, the setup looks cleaner than before, with whale buildup, increased dormancy, and clearly defined technical limits.
Ethereum’s rebound is not guaranteed, but this time around Ethereum’s fundamentals appear to be stronger than ever.
