Significant Ethereum transfers, exceeding $40 million in value, have been made by prominent investment firms Polychain Capital, Galaxy Digital, and B2C2 to centralized exchanges within the past 24 hours. This follows a price drop below the crucial support level of $1,600, which has proven to be a resistance point for Ethereum’s current momentum.
While the technical indicators suggest declining market trends, with the RSI reading near 38.9 and all major moving averages displaying sell signals, some analysts are hopeful for future recovery driven by rising demand as per the Moving Average Convergence Divergence (MACD) indicator. However, there is significant pressure on Ethereum with the price potentially facing a drop to $1,500 or even lower if it fails to regain ground above the $1,600 level.
Ethereum’s declining network activity is further evidenced by a decrease in Total Value Locked (TVL) and revenue. This decline has coincided with the emergence of strong competition from blockchain networks such as Solana, Tron, and Base, who have successfully attracted users and increased their revenue streams.
Adding to this pressure are the recent withdrawals from U.S.-based Ethereum ETFs. With $14 million withdrawn in total on April 15th, investors are taking a cautious approach to ETH investments.
Despite these challenges, it’s important to note that Ethereum remains under scrutiny. The market is closely watching for any potential rebounds while the long-term outlook for the cryptocurrency remains uncertain.