Ethereum’s price increased by 13.41% this week, now at $1,809 but still considerably below its 2021 peak. Over 80,000 ETH recently moved to derivatives exchanges, raising speculation among traders. Political announcements have provided some stability, but large Bitcoin movements may signal possible downturns affecting Ethereum.
This week, Ethereum saw a rise of 13.41%, bringing its price to $1,809. However, it still lingers about 63% below its peak of $4,891 from 2021. Analysts are scrutinising the numbers closely, trying to figure out if the recent surge indicates a sustainable recovery or if more challenges await in the future. The overarching downtrend initiated in late 2021 casts a long shadow, suggesting potential hurdles ahead for the cryptocurrency market.
Recent data indicates notable movement towards derivatives exchanges, as over 80,000 ETH flowed in recently. Such transfers are often perceived as speculation or a shift in trader sentiment regarding impending volatility. Amr Taha, a contributor at CryptoQuant, pinpointed that movements like these generally signal traders getting ready for significant price changes or gearing up for new positions. While nothing is certain, the uptick in such activity implies heightened caution among traders.
Interestingly, this surge in Ethereum inflows coincided with former US President Donald Trump’s announcement regarding Federal Reserve Chair Jerome Powell. Trump stated he has no intention of dismissing Powell, which seemed to calm markets worried about the Fed’s independence. Such political news, albeit not entirely decisive, often provides just enough stability for risk-sensitive assets like cryptocurrencies in today’s jittery climate.
Shifting focus, Bitcoin’s movements are also crucial for Ethereum’s fate. On April 23 alone, over $600 million worth of Bitcoin moved from whale wallets to exchanges, marking one of the largest inflows recently observed. This transfer followed a spike in BTC/GBP trading, triggering significant short liquidations, indicating that potential selling pressure may be brewing. This could lead to a short-term pullback for Ethereum if Bitcoin experiences heavy sell-offs, dragging the entire digital asset market down with it.
As Taha pointed out, there’s a concerning pattern that could emerge. With long liquidity piling up beneath Ethereum’s current trading levels, it raises the possibility of a ‘pump-then-dump’ scenario if market forces shift suddenly. Traders should remain vigilant as conditions in both Bitcoin and Ethereum could change rapidly, spelling uncertainty in the market.
