Ethereum Gains 10% in Week, Slips 4% Amid Derivatives Inflows and Geopolitical Tensions

Ethereum has mirrored Bitcoin’s recent recovery trend, posting a near 10% gain over the past week. The asset had previously experienced a sharp correction, but its latest rally saw prices climb toward the $1,600 mark.

However, the momentum has shown signs of slowing in the past 24 hours, with ETH slipping by around 4% to trade at $1,574 as of the time of writing. This decline comes amid renewed global macroeconomic uncertainty and shifting on-chain activity that may influence short-term market dynamics.

One of the most recent signals comes from an uptick in Ethereum inflows to derivative exchanges. More than 77,000 ETH were transferred to derivative exchanges on April 16—the largest single-day inflow in both March and April. This spike follows similar inflow events on March 26 and April 3, both of which preceded notable price declines for Ethereum. These inflows suggest a possible rise in hedging activity or short positioning by traders preparing for additional volatility.

This market behavior is also being influenced by geopolitical tensions. Recent trade actions from China—which include retaliatory tariffs on US agricultural and technological goods—have contributed to a broader risk-off sentiment in financial markets. Such macroeconomic shifts often trigger outflows from volatile assets like cryptocurrencies, as investors seek safer alternatives such as U.S. Treasuries or fiat currencies.

The consistency of these large-scale inflows to derivatives platforms points toward institutional or large-holder strategies, where ETH is likely being moved to hedge portfolios or open short positions. While this doesn’t necessarily confirm a downward trend, it does reflect heightened caution among more experienced market participants. The link between macro factors and on-chain behavior highlights how external shocks can influence market sentiment and trading patterns.

Although Ethereum has shown signs of price recovery, the recent spike in derivatives activity and rising geopolitical tension add complexity to its short-term outlook. Overall, it is considerable to monitor on-chain flows closely, alongside global economic indicators, to better understand where ETH might head next. Continued pressure in derivatives markets could act as a signal of sustained market uncertainty, even as some signs of accumulation emerge.