Ethereum ETH/USD Has Pulled Back to Levels Not Seen Since 2018

Ethereum ETH/USD has pulled back to levels not seen since 2018, yet key players from whales to traders remain defiant about the coin's future prospects.

The cryptocurrency market is currently in a state of flux, with Bitcoin (BTC) struggling to maintain its footing above the $40,000 level.

Despite this, interest in the world’s second-largest cryptocurrency, Ethereum (CRYPTO:ETH), seems to be heating up once again.

What Happened: Trader CrypNuevo took to X, formerly known as Twitter, to highlight that Ethereum's present range closely resembles historical accumulation zones, where prices tend to consolidate before a breakout.

“Bitcoin is holding the one-week 50-day moving average and BTC dominance hasn't peaked yet. As we remain in this range, I'm making some of my largest spot buys,” he said.

Crypto Caesar, another trader, highlighted the importance of this support zone, tying it to a potential moment where millionaires could be made.

“$ETH – #Ethereum is testing support. I'm still bullish. This is not the time to do nothing. In times like this millionaires are being made. You are just a few clicks away.”

Trader Niels noted that although Ethereum has underperformed this cycle despite ETF approvals, major upgrades, and increasing institutional interest, two catalysts could send ETH to $10,000.

“The two catalysts that could send ETH to $10,000 are a return of Fed quantitative easing and approval of ETH spot ETFs with staking enabled. We are still a long way from both. But they are the two biggest factors that will decide where crypto goes next.”

Trader Ted Pillows noted that Ethereum ETF flows remain negative, suggesting that staking might be the only lever left to salvage bullish momentum.

CryptoGoos, meanwhile, pointed out a divergence as whales are buying heavily, perhaps anticipating a move that retail investors haven't yet recognized.

Coinglass data showed a 4.6% spike in open interest, and in the 24 hours to 3 pm ET, over $27.8 million in liquidations were recorded. Notably, short liquidations totaled $14.5 million, compared to $13.3 million in longs, suggesting that the market could be setting the stage for a squeeze.

According to data from blockchain analytics firm IntoTheBlock, large transaction volume increased by 2.2%, and daily active addresses rose by 4%. Additionally, exchange netflows dropped by 127.6%, which could indicate a period of accumulation off exchanges.

What Else: Crypto YouTuber Crypto Rover noted that BlackRock (NYSE:BLK) now holds $2 billion in ETH, adding that he wouldn't expect the world's largest asset manager to make such a move lightly.

In a post on April 17, analytics firm Santiment's marketing director, Brian Quinlivan, noted that Ethereum gas fees are at five-year lows, indicating a lack of on-chain activity.

"These conditions have usually foreshadowed a reversal in price trends, making current entry levels appear favorable, especially for those with a long-term investment horizon. Low gas fees typically signal a bottom in the market cycle, and they are often followed by strong upside moves," Quinlivan said.

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