TLDR
- Ethereum has surged over 15% recently, approaching the $1,800 resistance zone
- ETH ETFs saw their biggest daily inflows since February ($38.74 million), breaking a 10-day streak of negative flows
- Institutional selling pressure continues with 72,000 ETH reportedly moved to exchanges
- Technical indicators show mixed signals with MACD turning bearish while RSI remains above 50
- Potential catalysts include staking ETF approval, Pectra upgrade, and changing market sentiment
Ethereum has staged an impressive comeback, climbing over 15% in recent days and touching the $1,800 mark. This marks its highest level since early April, bringing the second-largest cryptocurrency back into focus after weeks of sideways movement.
The price surge follows a clear breakout above the $1,650 level with bullish technical formations on the hourly ETH/USD chart. ETH also crossed above its 100-hourly simple moving average, confirming the upward momentum.
Market eyes are now fixed on the $1,800 resistance zone. A clear move above this level could open the path toward $1,850 and possibly $1,920 in the short term.
The psychological $2,000 level remains a key target that ETH hasn’t reached since early March. However, traders note that ETH’s hourly MACD has turned bearish while the RSI remains above 50 – indicating that consolidation or a pullback might occur before any serious breakout attempt.
ETF Flows Turn Positive
In a welcome development for Ethereum investors, U.S.-listed Ethereum ETFs recorded their biggest daily inflows since early February. According to SoSoValue data, the nine ETH ETFs brought in $38.74 million on April 22.
This breaks a 10-day streak of zero or negative flows and represents the highest daily intake since February 4, when ETFs saw $307.77 million in inflows. The fresh capital comes after eight consecutive weeks of outflows totaling nearly $910 million.
Fidelity’s FETH attracted most of the new money with $32.65 million in inflows. Bitwise’s ETHW also recorded a healthy $6.09 million. The other funds showed minimal movement for the day.
Since their launch, Ethereum ETFs have attracted approximately $2.26 billion in total, though recent weeks had seen consistent outflows until this reversal.
The timing of these inflows aligned perfectly with Ethereum’s price recovery, suggesting renewed investor confidence in the asset.
Institutional Pressure and On-Chain Metrics
Despite the positive price action, Ethereum faces persistent pressure from institutional selling. Reports indicate that major players including Galaxy Digital, the Ethereum Foundation, and Paradigm allegedly moved more than 72,000 ETH to centralized exchanges – moves that often precede large sell-offs.
On-chain activity shows concerning trends. Transaction fees dropped 56% in just one week and 88% over three months, pointing to reduced network usage. Month-on-month, net flows from major wallets fell by 95%, showing dwindling investor engagement.
These metrics highlight a lack of organic demand, which will be essential for any sustained price recovery. The previous weeks saw diminishing buy interest while supply from major holders increased.
The ETH/BTC pair has recently fallen to 0.017, a five-year low. This steep decline suggests market participants are currently favoring Bitcoin over Ethereum, a trend that could accelerate as Bitcoin benefits more directly from regulatory clarity and ETF-driven inflows.
Traditionally, a declining ETH/BTC ratio signals reduced risk appetite in crypto markets. Even if Ethereum performs well in USD terms, it could face pressure if this trend continues.
Technical analysts now view 0.0186 as the closest resistance point for the ETH/BTC pair. A break above that level would likely indicate a short-term sentiment reversal.
Catalysts for Future Growth
While headwinds persist, several factors offer hope for Ethereum bulls. Short positions on CME futures – previously a drag on price – have largely closed. These trades were based on arbitrage between ETF spot buying and futures shorting.
The diminishing short interest reduces downside risk, meaning positive developments could have an outsized impact. Potential catalysts include staking approval for Ethereum-based ETFs and possible U.S. Federal Reserve rate cuts.
The implementation of Ethereum’s Pectra update serves as another sentiment booster. Though early in its rollout, the update aims to improve the protocol’s scalability and performance, potentially making Ethereum more attractive to developers and investors.
The broader market environment also appears favorable. ETH’s rally comes amid renewed optimism following comments from U.S. Treasury Secretary Scott Bessent about cooling tensions with China over tariffs.
Some investors are hedging against the U.S. dollar as President Trump continues to criticize Fed chair Jerome Powell. This uncertainty, coupled with Paul Atkins’ confirmation as SEC chair, appears to be giving crypto markets a boost.
Bitcoin has broken through the $90,000 resistance, reaching $93,385 and helping push the overall crypto market back above a $3 trillion valuation. Bitcoin’s decoupling from traditional risk assets is also noteworthy, with BTC up 13.6% in April while both the S&P 500 and the U.S. dollar index are down about 5% for the month.
Market analyst Ash Crypto recently posted on X that ETH looks “ready to explode,” pointing to similarities with Bitcoin’s setup from late 2024.
$ETH IS ABOUT TO EXPLODE 🚀 pic.twitter.com/mMiFXpLzzJ
— Ash Crypto (@Ashcryptoreal) April 22, 2025
Yet caution remains warranted. Some analysts suggest ETH needs to break above $2,000 and form a higher high to confirm a full trend reversal. Without that, the current bounce could be just another short-term rally in a broader downtrend.
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