Ethereum Sees Record 449,000 ETH Inflows Despite Price Declines

Ethereum experienced a significant milestone on April 22, with a record 449,000 ETH flowing into accumulation addresses. This single-day inflow, valued at an average price of $1,750, marked the highest level of inflows since 2018, indicating a strong bullish sentiment among long-term holders despite recent price declines.

The surge in inflows suggests that investors are optimistic about Ethereum's future prospects, even though the realized price for these accumulation addresses stands at $1,981, meaning holders are currently at a loss. This shift in holder dynamics, where the realized price has recently surpassed the market price, highlights a change in the behavior of Ethereum investors.

In addition to the record inflows, Ethereum's on-chain activity has shown positive momentum. Between April 20 and 22, active addresses on the network rose by 10%, from 306,211 to 336,366. This increase, coupled with upward price movement, signals growing network engagement and bullish sentiment.

However, decentralized finance (DeFi) activity remains subdued. Data indicates that decentralized exchange (DEX) volumes are declining, with transactions holding steady at a weekly average of approximately 1.3 million, suggesting limited DeFi momentum.

Despite the positive signs, Ethereum faces key resistance at $1,895.50, where 1.64 million ETH is held by investors who bought during November 2024. This level could see selling pressure as holders might attempt to break even or lock in profits. Technical analysis further confirms this resistance, with the price hovering near the daily chart's 50-day exponential moving average (EMA), a critical trend reversal indicator.

Ethereum remains in a clear downtrend on higher time frame charts, with no definitive signs of a bullish reversal. A daily close above $2,142 is essential to spark a potential recovery, breaking the pattern of lower highs and lower lows. However, an anonymous trader warns of an emerging bearish fractal—a repeating price pattern that previously led to declines. This suggests Ethereum could face another rejection and drop below $1,400 if the markets start trending down again.