Ethereum saw a surge to $3,663 on March 26, marking a 20% increase from its monthly low recorded on March 19. Market data indicates a shift towards optimism among investors as the Bitcoin halving approaches.

After nearing a dip below $3,000 last week following the post Dencun Upgrade sell-off, Ethereum's price has rebounded with a 20% gain on the weekly chart. This recovery phase is attributed to investors preparing for potential impacts of the Bitcoin halving, scheduled for April 20.

Since the countdown to the Bitcoin halving reached the 30-day mark on March 19, Ethereum investors have adopted a more conservative trading approach. On-chain data reveals a decline of 200,000 ETH in exchange reserves over the past week, suggesting a reluctance to sell in the short term.

The correlation between this decline and the 30-day Bitcoin halving countdown indicates that the impending event could be a significant factor influencing Ethereum investors' behavior.

The decrease in exchange reserves, totaling over $740 million worth of ETH, signifies a transfer of coins from immediate market supply to long-term storage or staking contracts. With demand remaining steady and supply diminishing, this exerts upward pressure on prices, resulting in Ethereum's 20% surge since March 19.

Looking ahead, Ethereum's price forecast suggests potential resistance at $3,750, with further bullish momentum likely driving a breakout towards $4,000 ahead of the Bitcoin halving. The majority of investors are currently in profitable positions, indicating a reluctance to sell and supporting the prediction of a rebound.

However, in case of a market downturn, the $3,500 psychological support level is expected to be defended by bullish investors.