Ethereum is gradually rebounding after a 33% drop in February. The recent price increase is driven by growing investor confidence, with many buying ETH at lower prices.
Investor Support Strengthens
Over the past six days, the amount of Ethereum held on exchanges has decreased by 635,000 ETH — equivalent to over $1.28 billion. This signals that investors are accumulating ETH in anticipation of a future price rise. Lower supply on exchanges can create upward pressure on price.
The Liveliness indicator, which tracks the activity of long-term holders, has hit a monthly low, indicating that major investors are holding onto their ETH. This trend underscores their confidence in the asset’s long-term potential.
ETH Price Outlook: Possible Breakout Ahead
At the time of writing, ETH is trading at $2,025, down 2% in the last 24 hours. The cryptocurrency is maintaining support at $2,000 but has yet to break through the resistance level at $2,141. A close above this point could confirm recovery and open the path for further growth.
If a breakout occurs, the next target would be $2,344 — helping to recover February’s losses and sustain the upward trend. However, if bullish momentum weakens and ETH fails to break resistance, the price could fall below $2,000 and test support at $1,862.
In summary, the active accumulation of Ethereum and its declining availability on exchanges suggest optimistic prospects for this cryptocurrency.
