Ethereum has experienced significant volatility over the past year, marked by several false breakouts and price fluctuations.
However, recent price action suggests Ethereum is stabilizing and showing signs of potential recovery. After battling through uncertainty, ETH has established a bullish higher low, signaling that its upward trend may continue despite previous setbacks.
Ethereum’s Volatile Year and Fakeout Trap
Ethereum faced notable volatility in 2025, with several ups and downs in its price movements. The OBV indicator, which measures buying and selling pressure, showed initial bullish signals, suggesting strong buying interest.
However, after a breakout, Ethereum failed to hold its momentum during a re-test, leading to a fakeout.
$ETH – Weekly OBV matches sentiment about the confusing year it’s been. Making a bullish higher low with a nice breakout but then absolutely no re-test, but then still pulls out a bullish HL, fakeout trap, then instant breakout. Somehow, after everything, still bullish though. pic.twitter.com/yjk4q62ou2
— IncomeSharks (@IncomeSharks) December 12, 2025
A fakeout occurs when a price move looks like a breakout but fails to sustain itself. In Ethereum’s case, this led to a sharp price correction, catching many traders off guard.
Despite this, Ethereum OBV did not show major signs of weakness, suggesting that there was still interest from buyers even during the price retracement.
Fakeouts are common in volatile markets like cryptocurrencies. While they can mislead traders, they often indicate market indecision rather than a long-term trend reversal.
Formation of Bullish Higher Low Signals Potential Reversal
After the fakeout trap, Ethereum has managed to form a bullish higher low. This suggests that while the price may have pulled back, it is still holding above important support levels. A higher low formation is often seen as a sign that the market is still bullish, as it indicates buyers are still active and willing to enter the market.
This higher low could signal the start of a new upward trend for Ethereum. The market has tested these support levels and found enough demand to push prices higher. If Ethereum can maintain this support, it could continue to climb and establish a more sustained bullish trend.
Despite the volatility, the recent price action shows that there is still strong buying interest in Ethereum. This could lead to a more stable period, where Ethereum’s price could gradually increase in the coming months.
Related Reading: Ethereum Whales Load Up on $426M in Long Positions as ETH Surges
Whale Accumulation and Price Action
Whale accumulation, indicated by the balance of addresses holding over 100k ETH, plays a key role in Ethereum’s price movements.
Large addresses tend to accumulate ETH during price corrections, signaling confidence in long-term growth. This behavior suggests whales anticipate future price increases, offering valuable insight into Ethereum’s market outlook.
$ETH is trading at whale cost basis
This has only happened a few times since its meteoric run in 2021 pic.twitter.com/cvHvh74f5F
— EllioTrades (@elliotrades) December 13, 2025
The correlation between whale activity and price is evident, as price often rises following periods of significant accumulation. This accumulation sets a price floor, supporting the idea that whale activity can limit downside and trigger future rallies once market sentiment improves.
The realized price (white line) acts as a benchmark for over or undervaluation. When the price aligns with or surpasses the realized price, it signals fair or undervalued conditions.
As whale holdings increase during price rallies, it confirms their belief in Ethereum’s long-term potential, reinforcing a bullish market trend.