Key Insights:
- Over 368,000 ETH were sent to exchanges since early April, suggesting sell pressure.
- Ethereum is testing $2,150 resistance after breaking out of a wedge pattern.
- ETF outflows continue for ETH, with $5.97M exiting on April 14 alone.
Ethereum (ETH) recovered from around $1,460 to $1,640 between April 1 and April 15. However, this price rebound coincided with rising exchange reserves. According to CryptoQuant, more than 368,000 ETH were moved to centralized exchanges during this period.
Exchange Inflows Rise as Ethereum Price Recovers
In April, Ethereum’s price recovered from around $1,460 to $1,620 by April 15. Nevertheless, this upward trend has been mirrored by a constant rise in exchange reserves. As CryptoQuant data shows, more than 368,000 ETH have been moved to centralized exchanges since early April.
The chart data indicates that exchange reserves went up from around 18.60 million ETH on April 1st to 18.95 million ETH on April 15. These movements usually indicate that investors are about to sell, as coins are easier to trade once held on exchanges. This could weaken the strength of the token’s recent rally.
Ethereum price was on the rise as it attempted to rebound from a long downtrend, but this pressure could slow down its next price move if selling rises.
Ethereum Price Eyes $2,150 After Breakout from Broadening Pattern
On the other hand, Trader CryptoFaibik has provided a technical analysis of Ethereum’s price breaking out of a descending broadening wedge on the daily chart. As per the chart, the token has recently broken above the upper resistance line of this pattern, which had contained the price in a downward channel since December 2024.
Ethereum is currently trading near $1,640 and is eyeing the next key resistance level at $2,150. This level previously served as strong support during late 2024 but then turned into a major resistance zone after the breakdown in January.
On the surface, the breakout looks strong and the price has rallied over 15% in the past two weeks. Nevertheless, the cryptocurrency will have to break this $2,150 barrier with strong volume support for a full reversal to take hold. Without that, the rising supply in the exchange may see renewed selling.
ETF Outflows Reflect Weak Investor Confidence in ETH
Conversely, ETF flows provide additional context. On April 14, Bitcoin ETFs had a net inflow of $1.47 million, while Ethereum ETFs had a $5.97 million net outflow. This was the fifth consecutive day of ETH product withdrawals, indicating a difference in sentiment among investors.
Despite its recent price recovery, the continuous outflows imply that investors are cutting exposure to Ethereum. Meanwhile, Bitcoin seems to be regaining institutional interest as it has been seeing consistent ETF inflows this week.
Notably ETH is trying to hold its short-term momentum while this divergence is taking place. If the institutional interest in ETH continues to fall, then it may influence the market sentiment and delay a stronger rally above the $2,150 mark.
Derivatives Data Shows Neutral to Bearish Positioning
Meanwhile, Coinglass also shows that Ethereum’s funding rate is mostly neutral to negative. Throughout April, the OI-weighted funding rate has been flat or slightly below zero, indicating that traders in the futures market are not heavily favouring long positions.
Flat or negative funding suggests that traders are not aggressively taking long positions. Combined with ETF outflows and rising exchange inflows, this could restrain ETH’s short-term upside.
Although some traders may be attempting to play the breakout, broader sentiment remains cautious. Ethereum must decisively clear the $2,150 resistance to confirm a trend shift. Otherwise, bearish positioning and sell pressure may prevail.
Disclaimer
This article is for informational purposes only. Crypto investment involves inherent risks due to the volatility in price. Readers should conduct their research before making any investment decision. Also, you can consult a crypto expert before investing in cryptocurrencies.
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