Ethereum Traders on High Alert: Critical Support Level to Watch Amid Market Jitters

As of April 19, 2025, Ethereum traders are exhibiting heightened sensitivity to market fluctuations, with technical analysts closely monitoring a pivotal support level that could determine near-term price action. The current sentiment reflects caution, though seasoned market participants are strategically positioning themselves around this key threshold. Volatility indicators suggest potential breakout opportunities, emphasizing the importance of this technical zone for both short-term traders and long-term holders. Market microstructure analysis reveals increasing open interest around this level, indicating a probable inflection point for ETH’s price trajectory.

Source: IntoTheBlock

Will the downtrend prevail as ETH tests mid-channel?

A closer look at the technical structure revealed that ETH is still trading within a broad descending channel stretching back to January 2025. This downtrend has consistently suppressed bullish momentum, pushing ETH lower each time it touches the upper resistance band. 

Lately, the price action has been flirting with the channel’s midline, showing hesitation from both bulls and bears. Unless buyers break above $1,630, the bearish structure will remain intact. The lower boundary of the channel aligned closely with the $1,475 support zone too. 

If this bearish narrative gains momentum, this level could act as the next critical downside target. To put it simply, this price structure reinforces the significance of the $1,630-resistance acting as a potential pivot.

Source: TradingView

Are whales and leverage traders preparing for a major move?

Whale activity painted a mixed picture though. Over the last seven days, large holders netflows increased by 10.76% – A sign of minor accumulation. 

However, the 30-day change highlighted a stark decline of 46.70%, confirming recent heavy distribution. On a broader 90-day scale, netflows were still slightly positive, hovering at +1.77%.

Source: IntoTheBlock

Meanwhile, the estimated leverage ratio ROSE to 0.7009, up 1.01% in the last 24 hours.

This uptick hinted at growing speculative interest and rising leverage across exchanges. Therefore, if ETH breaks out of this range, a volatility spike driven by liquidations could follow.

Is ETH losing its deflationary strength?

The percentage of ETH fees burned has weakened significantly. The 7-day average burn rate dropped to 27.08% too, well below the 90-day average of 42.38%. This drop reflected lower network activity and demand, softening ETH’s deflationary pressure. 

Therefore, without a meaningful hike in on-chain activity, bullish follow-through may struggle to sustain any momentum on the charts. 

Source: IntoTheBlock

ETH is at a tipping point right now. Price action, on-chain clusters, and whale activity all indicated that a major move may be brewing. However, the bearish structure, declining burn rate, and rising leverage suggested that bulls must act fast to avoid any further downside. 

A breakout above $1,630 could unlock targets at $1,860 and beyond. However, failure to hold $1,540 may invite a sharp correction towards $1,475.