Ethereum Faces Possible Short-Term Bearish Correction
As of April 17, 2025, market indicators suggest Ethereum (ETH) may experience a temporary price decline in the near future. Technical analysis shows weakening momentum, with key support levels being tested amid broader market uncertainty. Traders should monitor the $3,200 support zone closely, as a breakdown could trigger further downside toward the $2,800 region. This potential retracement follows ETH’s recent failure to sustain above its psychological resistance at $3,600, despite strong fundamentals including growing Layer 2 adoption and decreasing exchange reserves. The Relative Strength Index (RSI) currently hovers near 45 on the daily chart, indicating neither overbought nor oversold conditions, while the MACD shows bearish divergence developing. Institutional interest remains stable according to CME futures data, suggesting this may represent a healthy correction rather than a trend reversal. Market participants are advised to watch Bitcoin’s price action for correlation signals, as the two assets maintain a 0.85 30-day correlation coefficient.
Ethereum ($ETH) has just witnessed a crucial development in the derivatives sector. As per the data from the popular CryptoQuant, a staggering 77,000 $ETH have entered the derivatives exchanges, signifying considerable concerns about a sheer price dip afterward.
Ethereum Derivatives See +77,000 ETH Inflow
“This spike follows similar inflow events on March 26 and April 3, both of which preceded notable price declines.” – By Amr Taha
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Stunning Single-Day Inflow of 77,000 $ETH in Derivatives Exchanges Expresses High Downturn Risk
The massive Ethereum inflows of 77,000 $ETH into derivatives exchanges on April 16 have raised caution among the investors. This is because such instances have formerly led to significant price slumps. For instance, analogous inflow surges have already taken place on April 3 and before that on March 26. Both the respective events were followed by sheer price plunges.
The market data points out that such inflow spikes historically lead to bearish market responses. The crypto analyst has also pointed toward the hedging operations or the short positions opened by traders. Both of the former occasions saw swift downward price movements after the inflow upsurges. At the moment, Ethereum token is changing hands at $1,591.17, highlighting the near multi-month lows.
Escalating Macroeconomic and U.S.-China Trade Tensions Add to Ethereum’s Grim Outlook
Although the on-chain data presents a robust technical indication, it also aligns with the wider macroeconomic tensions. A few days back, China expedited the trade war against with the implementation of latest tariffs on the imports from the U.S. Hence, these aggressive measures have led to a heightened volatility in the crypto market.
In previous such cases, capital has often shifted from volatile sectors into conventional safe-haven assets such as Treasury bonds, gold, and the U.S. dollar. Such geopolitical factors have reportedly played a crucial role behind Ethereum’s short-term bearish outlook.
