Key Insights:
- Ethereum’s dormancy flow is under $2M, a level historically linked to major price bottoms and long-term accumulation.
- The long-term support at $1,600 is undergoing retesting by ETH following previous rebounds from this region.
- A bullish RSI divergence pattern indicates decreasing bearish force amid ETH price consolidation according to the weekly time frame..
Ethereum’s price has shown early signs of reaching a potential low, based on technical and on-chain indicators. ETH traded at $1,566 in April 2025, with a slight recovery after a brief dip. Smart money investors are watching key support zones, momentum shifts, and network dormancy—indicators often tied to future accumulation.
Ethereum Approaches Long-Term Support Zones
Ethereum (ETH) has reached its vital support trendline after multiple market drops in the past. A pattern that can be seen on the weekly chart relates the rising trend line with a horizontal support level that ranges from $1,570 to $1,600. As it has been derived from the price history of this area, buyers open their orders at this level.
An analyst highlighted prior retests using orange circles, each coinciding with recoveries. ETH recently rose 3.88% from a low of $1,507.70 to trade near $1,566.98. The bounce suggests potential for a local market bottom, even as volume remains weak.
The Relative Strength Index in ETH demonstrates bullish signs through an established momentum indicator. RSI continues to create higher low points as the market experiences declining prices. The divergence pattern emerges before price shifts as it indicates the decreasing strength of seller participation.
Dormancy Flow Suggests Long-Term Holders Are Inactive
The Entity-Adjusted Dormancy Flow for Ethereum is approaching historically low values. This metric compares the activity of long-held coins to Ethereum’s market cap. The minimal value indicates that seasoned investors store their older Ethereum coins in storage wallets.
The dormancy cash flow demonstrates low amounts of $2 million during April 2025. Previous market cycles recorded the same levels during the early 2020 period and the middle of 2018. The crypto market showed significant price surges after both occasions that resulted in dansk growth. Dormancy flow remains low during times when holders gain increasing confidence about keeping their Ethereum investments long-term.
The observed price pattern demonstrates that knowledgeable traders continue to gather investments as trader sentiment remains negative. The market value has reached $189.1 billion while maintaining a modest growth despite minimal trading activity. The value of fully diluted valuation stands at $188.95 billion at present. The supply chain expectations remain consistent following the implementation of proof-of-stake by Ethereum.
Historical Trends and Market Structure Point to Possible Recovery
The current Ethereum market system parallels previous phases where accumulation occurred. The price of ETH performed significant upward rallies, exceeding 900% in both 2017 and 2021 following these market declines. Another analyst suggests the current price action is following a comparable structure. The chart shows consolidation near long-term support, followed by a sharp upward trend in past cycles.
In 2025, Ethereum is consolidating around $1,600, forming what appears to be another potential bottom. Technical analysis shows a possible price target of $2,450–$3,000 if support holds. A stronger rally could see prices reach $13,000–$15,000, based on historical cycle performance.
However, the current market volume dropped 49.39% to $15.99 billion. Low volume during price recovery may signal cautious trading. Still, this kind of environment has previously been seen before larger moves, especially when long-term indicators align with technical bottoming signals.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
