TLDR
Ethereum has surged over 15% recently, approaching the $1,800 resistance zone
ETH ETFs recorded their biggest daily inflows since February at $38.74 million
Institutional selling and weak on-chain activity remain as headwinds
The ETH/BTC pair hit a five-year low at 0.017, showing Bitcoin’s dominance
Market analysts suggest ETH could be “ready to explode” if it breaks $2,000
Ethereum has staged an impressive rally, climbing over 15% in recent days and approaching a key technical resistance just below $1,800. This resurgence comes after weeks of sideways movement, bringing renewed optimism to investors.
The price break-out was confirmed as ETH moved above the $1,650 level, following bullish technical formations on the hourly ETH/USD chart and breaking above the 100-hourly simple moving average. This marks Ethereum’s highest price point since it last touched the $1,800 level.
Traders are now focused on the $1,800 resistance zone. A clear move above this threshold could open the path for further gains toward $1,850 and possibly $1,920. The psychological $2,000 level, which Ethereum hasn’t reached since early March, is now back in view.
The hourly MACD has turned bearish while the RSI remains above 50, suggesting that ETH could either consolidate or pull back before attempting another breakout.
ETF Flows Turn Positive
In a major shift, spot Ethereum ETFs in the U.S. recorded their largest daily inflows since early February. According to SoSoValue data, the nine U.S.-listed Ethereum ETFs brought in $38.74 million on April 22, breaking a 10-day streak of zero or negative flows.
This marks the highest daily intake since February 4, when they saw $307.77 million pour in. The fresh capital injection comes after eight straight weeks of outflows totaling nearly $910 million.
Fidelity’s FETH led the way with $32.65 million in inflows, while Bitwise’s ETHW attracted $6.09 million. Since their launch, Ethereum ETFs have attracted a total of around $2.26 billion.
The surge in ETF inflows coincided perfectly with Ethereum’s price recovery. On Tuesday, ETH spiked over 10%, climbing past the $1,700 mark for the first time since April 6.
Persistent Challenges
Despite the positive price action, Ethereum faces ongoing challenges. Institutional selling continues to put pressure on the market. Reports indicate that major players including Galaxy Digital, the Ethereum Foundation, and Paradigm moved more than 72,000 ETH to centralized exchanges, often a precursor to sell-offs.
On-chain activity has shown concerning trends. Transaction fees dropped 56% in a week and 88% over three months, indicating reduced network usage. Month-on-month, net flows from major wallets fell 95%, suggesting diminishing investor engagement.
These metrics highlight a lack of organic demand, which will be needed for any sustainable price recovery. The previous weeks showed declining buy interest while supply from major holders increased.
The ETH/BTC pair has recently plummeted to 0.017 — a five-year low. This steep decline suggests more market participants are favoring Bitcoin over Ethereum, a trend likely to continue as Bitcoin benefits from regulatory clarity and ETF-driven inflows.
Traditionally, a declining ETH/BTC ratio signals reduced risk appetite in the crypto market. Even as Ethereum performs well in USD terms, it could face pressure if this trend persists.
Signs of Optimism
While challenges remain, there are reasons for cautious optimism. Short positions on CME futures, which previously created downward pressure, have largely closed. These trades were based on arbitraging ETF spot buying and futures shorting.
The reduction in short interest minimizes downside risk, meaning any positive developments could have an outsized impact. Potential catalysts include staking approval for Ethereum-based ETFs and possible U.S. Federal Reserve rate cuts.
Another boost to sentiment has been the implementation of Ethereum’s Pectra update. Though still early in its rollout, the update aims to improve the protocol’s scalability and performance, potentially making Ethereum more attractive to developers and investors.
By Wednesday, Ethereum had briefly touched $1,800, representing a 14.2% increase in just two days. Meanwhile, Bitcoin broke through the $90,000 resistance, rallying to $93,385 and helping push the overall crypto market back above $3 trillion in valuation.
Some market analysts now believe Ethereum could be ready for additional gains. On April 23, analyst Ash Crypto suggested ETH looks “ready to explode,” noting similarities with Bitcoin’s setup from late 2024.
$ETH Dominance
Since dropped to new All Time Lows, Ethereum Dominance has managed to protect 2019 All Time Lows as support (black) for now
ETH Dominance needs to Monthly Close inside green so as to develop a reversal base like back in 2019-2020#ETH #Crypto #Ethereum https://t.co/Ubh8iDpx6j pic.twitter.com/3DXw4udWa2
— Rekt Capital (@rektcapital) April 22, 2025
Ethereum’s market dominance, which had fallen to its September 2019 low of 7% on April 22, has now bounced off this critical support level and returned above 7.5% on April 23.
The broader crypto market remains volatile, with Ethereum’s next moves dependent on a complex mix of technical levels, institutional flows, and macroeconomic signals. Traders and investors are watching closely as the outcome could determine the next phase of the crypto market cycle.
According to 10x Research’s Markus Thielen, it hasn’t taken much to drive Ethereum higher, as a “heavily shorted market is now experiencing a squeeze.” Technically, Ethereum was oversold on both daily and weekly timeframes, setting the stage for a rebound.
With the upcoming network upgrade moving to mainnet, there’s also a fundamental catalyst supporting the move. If Ethereum can break above the $2,000 mark and form a higher high, it would confirm a full trend reversal according to some analysts.
