Ethereum sees significant inflows to derivatives, raising market speculation. Price stabilizes around $1,800, with critical resistance noted. Major BTC transfer sparks concerns of sell-off pressure. Current metrics indicate moderate speculation with ETH relatively steady compared to previous highs.
In the last two days, Ethereum (ETH) has experienced a notable increase in inflows to derivative exchanges, intriguing traders and analysts alike. A single inflow surpassed 80,000 ETH, which could signal a shift in market sentiment. Typically, such significant inflows into derivatives precede intense price fluctuations or short-term downward pressure, potentially stirring things up in the crypto world.
Former U.S. President Donald Trump’s recent comments have been linked to this surge in DeFi activity, according to analyst Amr Taha. Trump’s declaration that he would not dismiss Fed Chair Jerome Powell was interpreted as an indication that political influence won’t sway the Federal Reserve’s decisions. This sentiment of stability may provide some reassurance, though Ethereum traders are under conditions that hint at impending price movements as interest in derivatives continues to climb.
Currently, Ethereum is priced at $1,800.65, which marks an increase of 1.56% over the last 24 hours and a 13.85% rise for the week. The cryptocurrency has re-entered a significant trading range of $1,750 to $2,100. Market analyst @DaanCrypto highlighted that ETH has transformed the $1,756 level from a month-long resistance into newfound support. This shift in market behaviour is noted as a pivotal change for ETH.
Traders have their eyes peeled on the $1,750–$2,100 range with resistance anticipated around $2,103.14 and $2,166.43—price points that previously functioned as support before recent downturns. If Ethereum can persist above this support and successfully break the $2,100 barrier, it might pave the way for fresh gains.
On April 23, a massive transfer of over $600 million worth of Bitcoin (BTC) from large whale wallets to exchanges drew attention. This was the largest inflow of BTC in a single day noticed lately. Such large transfers are often strategic and timed to market conditions following a rally that already liquidated numerous short positions. The question now rests on whether this inflow will precipitate genuine selling pressure.
Taha warns that if the BTC inflow translates into actual sell-offs, it could ensnare latecomers in long positions and trigger a price correction. Concerns surrounding a potential short-term retracement loom, especially if the market sees a liquidity drop beneath present levels, prompting closer scrutiny of long positions formed after the breakout.
As Ethereum’s price stabilizes, the Open Interest to Market Cap Ratio is holding at 0.21%, consistent with its 30-day average. This metric, which evaluates speculative interest in futures against ETH’s total market cap, reached a 30-day high of 0.23% earlier this month. While this suggests some speculative excitement, levels still pale in comparison to those witnessed in 2021 and mid-2022, indicating that recent price action is mostly driven by spot trading rather than excessive leverage in derivatives markets. Given the whale transactions, the inflow of ETH into derivatives, and the crucial levels at play, a short-term market shift may well be on the horizon.
