Ethereum has shown early signs of recovery after a prolonged period of weakness that pushed prices sharply lower. ETH has attempted to stabilize near key support levels, but further upside depends on sustained backing from investors and broader market conditions.
At present, Ethereum appears to have at least one of these factors working in its favor, keeping recovery prospects alive.
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Ethereum Investors Change Stance
On-chain data suggests a notable shift in investor behavior. The exchange net position change indicator, which tracks capital flows into and out of exchanges, has turned negative for Ethereum. This signals that more ETH is leaving exchanges than entering them, a pattern typically associated with accumulation rather than distribution.
Such outflows suggest holders are choosing to buy and move ETH into private wallets instead of preparing to sell. Lower prices often encourage this behavior as investors position for potential rebounds. This shift in stance reflects improving confidence, even as the price has yet to fully reflect rising demand.
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Ethereum Exchange Net Position Change. Source: GlassnodeBroader momentum indicators support this narrative. The Chaikin Money Flow has shown a steady uptick over the past week, reinforcing the trend observed in exchange data. Rising CMF values indicate declining outflows and improving capital flow dynamics across Ethereum markets.
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A move above the zero line would mark inflows overtaking outflows, a bullish development for ETH. At the same time, Ethereum has managed to hold above the 23.6% Fibonacci retracement near $2,054. Maintaining this level often acts as a trigger for renewed participation, encouraging investors to deploy capital as downside risk appears more contained.
Ethereum CMF. Source: TradingViewWhat Is ETH Price’s Next Target?
Ethereum is trading near $2,018 at the time of writing, signaling that demand remains present beneath current prices. The challenge lies in translating that demand into sustained upward movement. A successful bounce from the $2,000 level could push ETH through $2,205, a key short-term resistance. Beyond that, the psychological target of $2,500 comes into focus.
Ethereum Price Analysis. Source: TradingViewReaching $2,500 may not prove difficult from a structural standpoint. Cost basis distribution data shows relatively light accumulation around this zone, suggesting limited overhead supply. As a result, ETH could move through this range with less resistance once momentum builds. Stronger accumulation clusters appear closer to $2,800, which is likely to act as a more meaningful barrier.
Ethereum CBD Heatmap. Source: GlassnodeBefore that scenario plays out, Ethereum must clear intermediate hurdles. A decisive move above $2,344 would confirm recovery strength and validate the path toward $2,500 and potentially higher levels. Failure to sustain current support, however, would undermine the bullish setup. A loss of the $2,000 level would expose ETH to renewed downside risk, with $1,796 emerging as the next major support area.
Source: https://beincrypto.com/ethereum-price-looks-primed-to-bounce/

