Ethereum had an exciting week filled with activity. Ultra large exchange inflows spike, growing dedicated addresses holding assets, high futures liquidations. On Thursday, exchanges experienced net inflows of 178,900 ETH, marking a local bottom amid a period of heightened volatility. Though facing bearish pressure above the $1,800 level, accumulation addresses have gobbled up more than 1.11 million ETH in just the last seven days. This increase represents incredible confidence in the cryptocurrency’s future.
Exchange Inflows and Potential Investor Behavior
On Thursday, this substantial net inflow of 178,900 ETH into exchanges was the largest net inflow of ETH in a single day in 2024. While cash isn’t a bad thing, this influx does indicate a possible shift in investor sentiment, with some investors looking to sell their holdings.
Rather, investors might have over-reacted to conditions in the stock market, sparking the net selling pressure. Second, this pressure — amounting to over $317 million of Ethereum — indicates that some investors simply took profits on recent price appreciation. It’s important to recognize that this activity was occurring as $150M+ in futures liquidations were taking place, exacerbating the market’s volatility.
Accumulation Addresses Show Strong Confidence
Selling pressure at exchanges marketplaces are now sketchy. Unlike ETH accumulation addresses (those that have never spent funds), which are recently flipping bearish. From April 17 – 23, these addresses net purchased more than 1.11 million ETH. This dramatic influx is indicative of a strong and possibly unprecedented belief in the future value of cryptocurrency.
Importantly, almost 50% of these inflows occurred immediately after the price pumped up on Tuesday. This is an indication that more experienced holders took the bullish momentum and leveraged it to strengthen their positions even more. This kind of action shows a very calculated strategy for acquiring Ethereum. That person probably views temporary price moves as opportunities to buy additional assets.
Technical Analysis and Potential Price Movements
Ethereum’s price is facing difficulty surging beyond the $1,800 resistance area. It’s now facing a rejection from the 50-day Simple Moving Average (SMA), showing that bears are still in control. Our analysis shows the price fell to $1,473 on April 11. This decline could have formed a short-term price bottom, priming the move upward going forward.
If Ethereum continues to bounce off the $1,688 support level, it might trigger some bullish momentum once again. Such momentum could spell a retest of the key $1,800 psychological barrier. A continued rebound might give ETH the opportunity to overcome the upper boundary resistance of a descending channel. This breakthrough would pave the way for much larger future gains.
Removing these obstacles could set the stage for Ethereum to retake the important $2,000 milestone. It could even be poised to test the stiff resistance zone of $2,100 to $2,200. However, if bulls are not able to keep support at $1,688, we may see the price drop deeper, possibly retesting the low from April 11.
Futures Liquidations Reflect Market Instability
The futures market experienced an extreme amount of liquidations. Over the past 24 hours, traders liquidated a jaw-dropping $40.22 million in Ethereum positions. Long liquidations made up $27.07 million, and short liquidations were around $13.16 million.
This imbalance means that a lot of these traders were speculating on prices going up. As it’s been reported, they were exposed to unexpected price declines which forced liquidation of their positions. This extreme rate of liquidations serves as a reminder of how volatile ETH futures trading is. This risk comes into sharp relief during periods of market volatility.
