TGbtc – Crypto News

Ethereum Bulls Target $1,800 on Staking Hopes, Fading Short Pressure

  • Ethereum’s price struggles with increased selling from major institutions and falling network activity.

  • Investor focus shifts towards Bitcoin as Ethereum’s ETH/BTC value reaches a five-year low.

  • Key developments, such as staking approval, could be pivotal for Ethereum’s potential recovery.

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Ethereum made some recovery earlier in April, but mid-month onward, it struggled at the $1,600 level. The biggest altcoin faces challenges due to big investors selling off and low usage activity, unable to replicate Bitcoin’s positive momentum.

Ethereum’s recent poor price performance is largely due to actions by big investors. Reports revealed that three key entities, including Galaxy Digital), Ethereum Foundation, and Paradigm, transferred 72,100 ETH to exchanges.

These movements suggest that selling pressure might increase among large institutions, causing unease among traders. Additionally, unfavorable on-chain data contributes as another negative factor affecting Ethereum’s value.

At the same time, Ethereum’s network health is showing concerning trends. Transaction fees decreased by 56% over the past week and 88% over the past three months. Net flows from major investors fell by 95% in the recent month.

When big investors move ETH to centralized exchanges and buying interest stays low, short-term bullish potential is weakened.

CME Futures Pressure Ends, New Catalysts Awaited

On a positive note for Ethereum, short positions on CME futures, previously a significant pressure point, have mostly been closed. These large short positions were linked to arbitrage strategies involving spot purchases on ETFs and shorting futures heading into 2025.

While this closure doesn’t directly boost prices, it does reduce downside risk, creating an environment where positive news might encourage upward movement. Some encouraging factors include increased demand for spot ETFs and the Fed possibly cutting interest rates with a more moderate approach.

Internally, the successful launch of Ethereum’s Pectra update and the SEC’s approval of staking activities for ETFs could stimulate demand. These factors may help drive interest in Ethereum.

ETH/BTC Lowest in 5 Years

ETH/BTC

Crypto investors have boosted their interest in Bitcoin this month, while Ethereum’s decline catches attention. This shift led the ETH/BTC pair to drop to 0.017, its lowest point in five years, indicating a market focus on Bitcoin as confidence in Ethereum wanes.