Key Takeaways:

• Ethereum saw a record 449,000 in ETH inflows to accumulation addresses on April 22.

• Active addresses rose 10%, signaling growing network engagement, but DeFi activity remains weak with declining DEX volumes.

• Holders in accumulation addresses remain underwater with a realized price of $1,981.

Over the past 10 days, Ethereum inflows into accumulation addresses reached their highest levels since 2018. On April 22, a record-breaking 449,000 Ether (ETH), valued at an average price of $1,750, flowed into these addresses, marking the most significant single-day inflow in Ethereum’s history. This surge suggests that long-term holders remain optimistic about Ethereum’s future, despite recent price declines. 

However, the realized price for these accumulation addresses is $1,981, meaning these holders are currently at a loss, as the current market price is below this level. Notably, the realized price had been below Ethereum’s market price since 2018, only recently surpassing it, indicating a shift in holder dynamics.

Ethereum’s onchain activity has also shown positive momentum over the past few days. Between April 20 and 22, active addresses on the network rose by 10%, from 306,211 to 336,366. This increase and upward price movement signal growing network engagement and bullish sentiment.

Yet, decentralized finance (DeFi) activity remains subdued. Data from DefiLlama 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.

Related: Ethereum bounces back as market dominance recovers from all-time low

Ethereum faces key resistance at $1,895

According to the Cost Basis Distribution (CBD) heatmap for Ethereum, a significant supply concentration is highlighted at $1,895.50, where 1.64 million ETH is held by investors who bought during November 2024. This level, identified as a potential resistance, could see selling pressure as holders might attempt to break even or lock in profits. 

Based on a technical analysis, the resistance at $1,895 receives further confirmation. The price hovers near the daily chart’s 50-day exponential moving average (EMA), a critical trend reversal indicator. A failure to break above this EMA could signal further bearish momentum, while a sustained move higher might offer hope for bulls.

Despite this, 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, anonymous trader Rektproof 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.

Related: Institutions break up with Ethereum but keep ETH on the hook

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

BlackRock’s iShares Bitcoin Trust (IBIT), the largest Bitcoin exchange-traded fund (ETF), saw record-breaking withdrawals on Feb. 26 amid the sector’s prolonged sell-off during the last seven trading days.

Data from SoSoValue shows that IBIT lost 5,002 BTC, valued at $418 million, marking the fund’s highest single-day outflow. This outflow surpassed its previous record of $332 million set in January.

As a result, IBIT, which manages approximately $48 billion in assets, played a significant role in the day’s total sector-wide outflows of $756 million.

Fidelity’s Wise Origin Bitcoin Trust (FBTC) also experienced significant selling pressure, with investors withdrawing $145.69 million worth of Bitcoin. Meanwhile, the Ark 21Shares Bitcoin ETF (ARKB) recorded $60.46 million in outflows, and Grayscale’s Mini Bitcoin Fund saw $55.97 million leave its holdings.

Other funds also faced sell-offs, albeit at lower levels. Grayscale’s GBTC shed $22.66 million, while Invesco Galaxy’s BTCO registered $16.83 million in withdrawals. Bitwise’s ETF lost $13.65 million, while WisdomTree’s BTCW and Franklin Templeton’s EZBC reported outflows of $11.52 million and $9.69 million, respectively.

Meanwhile, this wave of exits followed an even larger outflow of $937.7 million on Feb. 25, extending a seven-day sell-off streak. Over the past week, nearly $3 billion has left Bitcoin ETFs, underlining the growing investor caution amid market uncertainty.