Ethereum (ETH) is under intensifying bearish pressure as over $40 million worth of ETH has been transferred to centralized exchanges by three major institutional players within the past 24 hours. The move comes at a critical technical juncture, pushing ETH below its key $1,600 support zone, raising fears of further downside.
According to on-chain analyst The Data Nerd, Polychain Capital led the exodus by depositing 5,700 ETH (≈$9.19 million), followed by Galaxy Digital with 12,500 ETH (≈$20.29 million), and B2C2, which moved 6,540 ETH (≈$10.67 million) to exchanges.
“Within the last 24 hours, there were multiple $ETH deposits into exchanges,” The Data Nerd posted on X, formerly Twitter, on April 16.
ETH Dips Below Critical Level
ETH’s break below $1,600 is significant, as the level had acted as a strong support since late Q1. The price now hovers around $1,570, with most technical indicators suggesting more pain ahead:
- The Relative Strength Index (RSI) is at 38.9, reflecting weak momentum.
- All major moving averages (10-day to 200-day) are flashing sell signals.
- MACD indicators suggest a short-term rebound might be possible, but broader sentiment remains cautious.
Analysts warn that if Ethereum fails to reclaim the $1,600–$1,620 zone, the next levels to watch are $1,500 and potentially $1,450. On the flip side, a relief bounce could retest $1,700, though resistance remains heavy at that level.
Fundamentals Mirror the Decline
On-chain metrics further support the bearish outlook:
- Total Value Locked (TVL) in Ethereum-based DeFi platforms has dropped from $70 billion at the start of 2025 to $46 billion, according to DeFiLlama.
- Ethereum’s monthly network revenue has cratered from $109 million in January to $7.2 million in March.
- Competitors such as Solana (SOL), Base, and Tron (TRX) are now outperforming Ethereum in both user activity and DApp revenue generation.
- Even prominent DApps like Uniswap (UNI) are showing stronger performance on rival chains.
ETF Outflows and Market Sentiment
Adding to Ethereum’s troubles, spot ETH ETFs in the U.S. recorded $14 million in outflows on April 15 alone, bringing total net outflows to $158 million over the past month, per data from SoSoValue. The loss of institutional confidence is another major weight on ETH’s recovery potential.
Ethereum’s 45% drop in Q1 2025 marks its third-worst quarterly performance since 2016. Combined with large-scale token dumps, weakening fundamentals, and rising competition, Ethereum faces a critical test in the days ahead.
