The price of Ethereum (ETH) experienced a significant surge on April 28, reaching as high as $3,350. This marked a 17% increase over the past 10 days, with on-chain indicators revealing the main catalyst behind this recent uptick.
During a period of market downturn, when Ethereum’s price dropped to a low of $2,868 on April 19, concerns arose about a potential crash similar to the post-Bitcoin Halving crash that occurred in 2024. However, instead of witnessing a large-scale sell-off, whale holders of ETH and users of Liquidity Staking Derivatives (LSD) turned to yield staking contracts to generate passive income and navigate the market downturn.
According to a previous report by The Crypto Basic, there has been a surge of $620 million in Ethereum 2.0 staking, which seems to have helped alleviate the selling pressure in ETH markets over the past week.
Unsurprisingly, Ethereum’s price has outperformed Bitcoin (BTC) by a significant margin over the past 10 days. While ETH experienced a 17% recovery between April 19 and April 29, BTC’s price dropped by 5% during the same period.
Looking beyond the price action, on-chain data trends observed over the past three days suggest that Ethereum is likely to continue its winning streak against BTC in the upcoming week. The IntoTheBlock Exchange Netflow metric, which tracks the daily difference between deposits and withdrawals of a specific cryptocurrency across recognized crypto exchanges, indicates a negative netflow trend for Ethereum. This suggests that investors are increasingly withdrawing coins into long-term storage or staking contracts, thereby reducing the available spot market supply.
As shown in the snapshot, Ethereum has recorded negative netflows for three consecutive trading days since April 26. During this period, investors have moved a total of 5,410 ETH from exchange-hosted accounts into long-term storage and staking contracts. As of April 29, ETH is trading at around $3,180, indicating that Ethereum holders have reduced the current market supply by approximately $17 million.
Based on this decline in market supply, it is expected that Ethereum’s price will continue to outperform Bitcoin for a second consecutive week, as the bulls aim to reclaim the $3,500 milestone. However, historical accumulation trends suggest that Ethereum’s price must surpass the $3,266 level, where 2.07 million addresses had acquired 4.93 million ETH, in order to validate this bullish price forecast.
If Ethereum bulls can successfully break above the $3,270 level, it could lead to further upward momentum towards $3,500. On the other hand, if ETH’s price experiences another major downturn, it could potentially drop as low as $2,980 before finding significant support.
Disclaimer: This article is for informational purposes only and should not be considered as financial advice. The views expressed in this article are solely those of the author and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct their own research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.