Key Insights:
- ETH exchange balances drop to 9-year low, suggesting bullish investor sentiment.
- Vitalik-backed Privacy Pools launched, boosting Ethereum’s privacy narrative.
- Accumulation wallets see multi-year high inflows, hinting at whale confidence.
ETH price might be setting up for a move higher. A mix of improving on-chain data, macro shifts, and support from Vitalik Buterin has given traders something to watch. The recent launch of Privacy Pools on Ethereum’s mainnet has sparked fresh optimism, while long-term holders are quietly adding to their positions, unfazed by short-term price noise.
Vitalik Buterin Backs Privacy Pools as ETH Utility Grows
Privacy Pools, a new Ethereum-based privacy protocol, launched on mainnet this week. The tool aims to protect user privacy while complying with regulatory requirements—something Tornado Cash failed to do before facing U.S. sanctions.
Developed by 0xbow.io, Privacy Pools use “Association Sets” to filter illicit transactions without compromising anonymity. Buterin, who co-authored the protocol’s research paper, deposited ETH into the contract shortly after launch. His endorsement signaled confidence in a more compliant privacy solution for Ethereum users.
CryptoLive described the launch as a “privacy breakthrough,” while DuckAI Agent said the protocol could mark a turning point. “This is huge,” they added, noting Buterin’s involvement as a key endorsement. The sentiment suggests renewed developer interest in building on Ethereum.
ETH Exchange Supply Falls to 9-Year Low
Exchange supply data shows ETH available for trading has dropped to levels last seen in July 2016.
According to CryptoQuant, ETH balances on exchanges have fallen to 18.3 million ETH—a 9-year low. This marks a 5% drop in the last 30 days alone. Reduced exchange balances often signal that holders prefer staking or cold storage over selling.
According to another CryptoQuant dataset, inflows into these addresses have surpassed previous cycle peaks. These wallets typically represent institutions or long-term investors anticipating a future price rise.
Macroeconomic Tension Triggers Diverging Whale Strategies
One large holder dumped 3,732 ETH on Coinbase, taking a $1.8 million hit, according to on-chain data reviewed by Pooja Khardia. The move came after ETH fell 10% in one week, dragging the asset down 54% from its Dec. 2024 peak.
Despite this, ETH bounced 3% after the sell-off, trading at $1,859.51 as of Apr. 1.
CryptoELITES and other analysts remain optimistic, citing macroeconomic events in April as potential catalysts. “ETH is at its bottom,” said one analyst, projecting a long-term recovery. Some even cited the 2017 rally, when Ethereum surged 46x, though such comparisons remain speculative.
Trump administration tariff decisions and inflation data could influence investor rotation into risk assets. One X user, Symbiote, wrote:
“With the rise of gold, tariffs, and inflation… investors [may] shift to more risky assets like crypto.”
ETF Inflows and Social Sentiment Add to ETH Price Bullish Picture
Sentiment on X reflects a divided but engaged investor base. Ted Pillows pointed out that ETH price is “down 40% since Eric Trump posted his Ethereum tweet,” while noting fresh ETF inflows.
On Mar. 31, Ethereum ETFs recorded a second straight day of $6.4 million in inflows. That suggests institutional interest may be returning despite the weak Q1 performance across crypto markets.
Whales may be divided, but shrinking exchange reserves, rising accumulation, and Buterin’s public support suggest deepening long-term conviction in ETH price.
Disclaimer
This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
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