As efforts continue for recovery in the cryptocurrency market, the supply of Ethereum (ETH) on exchanges has decreased to its lowest level in a year. On-chain data indicates that investors are withdrawing their ETH from exchanges to hold for the long term, while the increase in leverage usage suggests an increased risk appetite in the market. While the cryptocurrency market has been trying to recover recently, Ethereum (ETH) saw a 9% increase in value last week. With the overall market improvement, rising ETH could gain stronger momentum along with some critical developments seen in on-chain data. The decrease in ETH supply on exchanges to its lowest level in a year and the increasing leverage usage by investors are among the factors supporting expectations of an upward movement. **ETH SUPPLY ON EXCHANGES DROPS TO ANNUAL LOW** According to on-chain analysis platform CryptoQuant’s data, ETH’s exchange reserve has dropped to 18.32 million. This figure represents a 7% decrease from the 19.74 million coin level reached on February 2. The exchange reserve amount represents the supply of an asset actively available for trading on trading platforms. The decrease in reserves indicates that investors are starting to withdraw their ETH from exchanges to hold in long-term wallets, stake, or move towards a possible spot ETH ETF. This trend could reduce the circulating supply of ETH in the market, creating upward pressure on the price. **INVESTORS INCREASING LEVERAGE USAGE** Alongside the decrease in ETH supply on exchanges, there is an observed increase in investor interest in leveraged trading. CryptoQuant data shows that Ethereum’s Estimated Leverage Ratio (ELR) indicator reached its highest level since the beginning of the year at 0.686 on March 21. Following a small pullback, this ratio is currently at 0.683. The ELR indicator measures the average leverage amount that investors use to trade on a cryptocurrency exchange. A high ELR ratio suggests that investors have strong expectations for the future rise in ETH price and thus are trying to increase their positions with leverage. Despite fluctuations in ETH price since the beginning of the year, the increase in leverage ratios indicates a significant rise in investor risk appetite. **CRITICAL LEVELS FOR ETH PRICE: $2,224 or $1,924?** Ethereum’s price has increased by 4% in the last 24 hours, reaching $2,089. According to Elder-Ray Index data, as buying pressure increases in the market, the green histogram bars in the indicator show a strengthening upward trend. The indicator value has reached 52.80, hitting the highest level in the last 30 days. These data indicate the start of an upward trend in ETH price and that bulls are trying to control the market. If Ethereum buyers maintain control, it seems possible for the price to test the $2,148 level. However, if selling pressure increases, ETH could first drop to $1,924, and then potentially further down to $1,759. The general market outlook indicates a critical period for Ethereum. The decrease in exchange supply and the increase in leveraged positions are considered as signals for an upward movement. Nevertheless, a possible change in investor sentiment or an unexpected development in market conditions could lead to new fluctuations in ETH price.