Ethereum is attempting a slow but steady recovery after losing 33% at the end of February. The recent recovery is primarily driven by investor confidence, with many accumulating ETH at the current low prices.

These investors are expecting prices to rise, hoping to leverage Ethereum's growth potential.

Ethereum Receives Investor Support

Ethereum supply on exchanges has decreased by 635,000 ETH over the past six days, equivalent to a value of over 1.28 billion USD. This supply reduction reflects a strong accumulation phase where investors are buying ETH at current low prices. These buyers are betting on future price increases, contributing to growing optimism around Ethereum.

The rapid absorption of Ethereum on exchanges indicates investor confidence in price recovery. As these ETH holders tend to HODL, the supply reduction could create upward price pressure.

Ethereum's macro momentum is further supported by the Liveliness index, which tracks long-term holders' (LTHs) activity. The Liveliness index recently touched monthly lows, indicating LTHs are accumulating and holding ETH. This shift towards HODLing by Ethereum's primary holders suggests confidence in the altcoin's future performance.

The increasing support from LTHs and their accumulation efforts demonstrate faith in Ethereum's long-term value. As these holders continue to lock up their ETH, it reduces circulating supply, potentially contributing to price appreciation.

Is ETH Poised for a Breakout?

Currently trading at $2,025, Ethereum has reclaimed $2,000 as support on the daily chart. However, it has yet to break through the $2,141 resistance level, which is crucial for consolidating recovery efforts. Successfully overcoming this barrier would confirm Ethereum's upward momentum and pave the way for further gains in the coming days.

If Ethereum successfully maintains $2,141 as support, it could be on track to recover from the 33% decline in late February. A sustainable breakout above this resistance could push ETH to $2,344, helping it regain lost ground and continue the upward trend. This would signal renewed confidence in Ethereum's market prospects.

However, if the upward momentum fails to materialize and Ethereum struggles to break through the $2,141 barrier, the altcoin could face correction. Failure to overcome this resistance level might lead to a price drop below $2,000, potentially testing the $1,862 support.