Ethereum’s recent price recovery faces challenges from significant exchange inflows and ETF outflows. Over 368,000 ETH has been sent to exchanges, indicating potential sell pressure. Current resistance is set at $2,150, requiring strong support to signal a successful breakout. Overall, investor sentiment remains cautious, as ETF outflows and neutral funding rates complicate short-term momentum for ETH.
Ethereum (ETH) has recently seen a notable rebound in price, rising from approximately $1,460 to $1,640 between April 1 and April 15. This increase is tempered by significant exchange activity, with over 368,000 ETH transferred to centralized exchanges during the same timeframe, as reported by CryptoQuant. Such inflows typically indicate sell pressures, suggesting that the price increase may not be sustainable without stronger buying support.
As Ethereum’s price approaches the crucial resistance level at $2,150, it’s essential to note that $2,150 was previously a robust support area which became a resistance zone following a price breakdown in January. Trader CryptoFaibik has indicated that ETH has recently broken out from a descending broadening wedge pattern; however, for this breakout to signal a genuine reversal, trading volumes need to support the move.
Despite the price rising over 15% in the last two weeks, the concurrent increase in exchange reserves may bring renewed selling pressure, hampering the momentum. Furthermore, on April 14, Ethereum ETFs experienced net outflows of $5.97 million, contrasting sharply with Bitcoin ETFs which saw inflows of $1.47 million. This disparity suggests a waning confidence among investors in Ethereum.
Additionally, data from Coinglass indicates a largely neutral to bearish positioning among traders in the derivatives market, with funding rates remaining flat or negative. This lack of optimism, combined with the ETF outflows and rising exchange inflows, may constrain Ethereum’s short-term price potential.
In summary, while Ethereum strives to maintain upward momentum amidst the ongoing volatility in investor sentiments, the presence of significant sell pressure from exchanges, coupled with weak institutional interest, poses challenges for a breakthrough beyond the $2,150 resistance level. Investors must remain vigilant and consider market conditions before making decisions.
