Ethereum Hits Record Inflows Amidst Mixed Signals in the Market

On April 22, Ethereum reached a record inflow of 449,000 ETH into accumulation addresses, reflecting a positive outlook from long-term holders despite current losses. Active addresses increased by 10%, but DeFi activity remains weak with declining DEX volumes. Key resistance sits at $1,895, with potential bearish patterns warning of further declines if market trends worsen.

Ethereum had a pretty remarkable boost on April 22, witnessing a monumental inflow of 449,000 Ether (ETH) into accumulation addresses. This surge, valued around $1,750 on average, sets a record for the largest single-day inflow in the cryptocurrency’s history. It seems long-term holders are feeling optimistic about Ethereum’s future, even if the price has seen some downturn lately.

Despite this excitement, it’s worth noting that the realised price for holders in these accumulation addresses stands at $1,981. This means that currently, those holders are sitting at a loss since the market price has dipped below this level. What’s interesting here is that until recently, the realised price hadn’t been over Ethereum’s market price since 2018, which shows a shift in how holders are viewing their investments.

In terms of engagement, Ethereum’s on-chain activity has seen a bit of a boost. Between April 20 and 22, active addresses climbed 10%, escalating from around 306,211 to 336,366. This spike is a positive indicator, hinting at rising user engagement and a possibly more bullish outlook—though, it’s still a mixed bag with DeFi activity lagging behind. Data from DefiLlama suggests many decentralized exchanges (DEX) are struggling, maintaining steady but unexciting weekly transaction averages of about 1.3 million.

Now, Ethereum’s price is battling a significant resistance level at $1,895.50, a critical threshold where roughly 1.64 million ETH is held by investors who made their purchases around November 2024. At this point, holders might be keen to either break even or even cash in some profits, which could lead to selling pressure right at this level.

Technical analysis shows that Ethereum’s price is lingering near the daily chart’s 50-day EMA, an important indicator for spotting trend reversals. If the price fails to break above this EMA, it could indicate a return to bearish momentum. Alternatively, if Ethereum can make a sustained move higher, the bulls might start to gain some hope.

Yet, despite these signs, Ethereum is still caught in a downtrend on longer time frames, lacking clear indicators of a possible bullish turnaround. For any hopes of recovery, experts point out that a daily close above $2,142 is crucial, as this would need to break the chain of consistently lower highs and lows.

Caution is still advised as some traders, like Rektproof, have flagged an emerging bearish fractal pattern which has historically led to declines. Should this downturn take hold, Ethereum might be at risk of slipping below $1,400.

It’s essential to highlight that this article is not investment advice. All trading decisions come with risks, so it’s wise for readers to do their own research before making moves in the market.