- Ethereum investors accumulated $1.28 billion in ETH, reducing exchange supply and signaling strong confidence in a potential price surge.
- Ethereum is eyeing the critical $2,141 resistance level, with a breakout potentially driving prices toward $2,344, while failure could trigger a dip below $2,000.
Ethereum’s recent price recovery is gaining traction, fueled by strong investor confidence and large-scale accumulation. Over the past week, Ethereum investors have withdrawn 635,000 ETH—worth approximately $1.28 billion—from exchanges, signaling a reduction in available supply and a potential price surge ahead.
Investors Drive Ethereum’s Supply Shock
The significant accumulation of Ethereum comes at a crucial time, as the cryptocurrency attempts to recover from a 33% price decline observed in late February. The rapid depletion of ETH on exchanges suggests that investors anticipate a bullish trend and are positioning themselves for potential gains.
Notably, on-chain data from Glassnode highlights a key shift in investor sentiment, with the Liveliness indicator reaching a monthly low. This metric tracks long-term holders (LTHs), and its recent dip suggests that major Ethereum holders are accumulating and choosing to hold rather than sell, further reinforcing confidence in ETH’s long-term value.
Ethereum Price Targets Key Resistance Level
Currently trading at around $2,025, Ethereum has successfully reclaimed the $2,000 support level. However, the next critical test lies at the $2,141 resistance. A decisive break above this level could confirm Ethereum’s upward momentum and pave the way for further gains toward $2,344.
If Ethereum successfully flips $2,141 into support, it could set the stage for reclaiming previous highs and solidifying a sustained recovery. However, failure to breach this key resistance could lead to a price pullback below $2,000, with potential support at $1,862.
What’s Next for Ethereum?
With investor accumulation at its highest level in weeks, Ethereum’s supply squeeze could play a crucial role in determining its short-term price trajectory. If bullish momentum persists, ETH could be on track to erase February’s losses and continue its climb toward higher resistance levels.
On the flip side, if buying pressure weakens, Ethereum may face another dip, testing support levels before making another attempt at recovery. The coming days will be pivotal in determining whether ETH can maintain its bullish stance or face further consolidation.
For now, investor confidence remains strong, and Ethereum’s accumulation trend suggests that the market may be gearing up for a breakout. Will ETH surge past $2,141 and continue its recovery, or will resistance prove too strong? The next price move could set the tone for Ethereum’s trajectory in the coming weeks.
