Ethereum is facing significant selling pressure as prominent investment firms collectively transferred more than $40 million worth of ether (ETH) to centralized exchanges over the past 24 hours.
Data released by blockchain analyst The Data Nerd on April 16 indicated substantial ether deposits by key investment groups. Polychain Capital moved 5,700 ETH valued at approximately $9.2 million onto centralized exchanges. Similarly, Galaxy Digital transferred 12,500 ETH, equating to roughly $20.3 million, and B2C2 deposited a further 6,540 ETH, equivalent to about $10.7 million.
The timing of these large-scale deposits has added to market uncertainty, as the ether price recently fell below the critical support level of $1,600, effectively turning this previous support into a significant resistance zone. Technical indicators are largely bearish, with major moving averages from the 10-day to the 200-day presenting clear sell signals. The Relative Strength Index (RSI) has reached 38.9, highlighting weak momentum—though still above oversold territory. The MACD indicator, while hinting at a possible short-term recovery, does little to reverse the broader negative sentiment currently weighing on the market.
Should ether fail to regain ground above the newly formed resistance between $1,600 and $1,620, further declines could push prices toward the range of $1,500 to even $1,450. Conversely, a successful rebound from the current price region might prompt a swift but short-lived rally toward the stronger resistance at $1,700.
On-chain metrics further underscore bearish attitudes, with Ethereum’s total value locked (TVL) dramatically declining from around $70 billion at the start of the year to $46 billion. Revenue generation on the Ethereum network also plunged significantly, falling from $109 million in January to just $7.2 million by the end of March. The increasing popularity of rival blockchain platforms, such as Solana, Base, and Tron, exacerbates Ethereum’s competitive pressures. Even major decentralized applications like Uniswap have found more attractive opportunities emerging on other blockchains.
Adding to Ethereum’s challenges are ongoing outflows from recently established spot ETH exchange-traded funds (ETFs). Data from financial analytics firm SoSoValue shows ETH ETFs experienced about $14 million in outflows on April 15 alone. Over the past month, total net outflows have reached roughly $158 million, compounding negative investor sentiment.
Ether lost 45% of its market value during Q1 2025, marking Ethereum’s third-worst quarterly performance since 2016. Given current widespread market pressure, significant institutional selling, deteriorating fundamentals, and increasing competition from other chains, Ethereum’s immediate path toward regaining stability appears notably challenging.
