- Ethereum saw a 10% surge in active addresses between April 20 and 22, signaling increased network activity as its price approached $1,830.
- However, the rise was met with institutional selling pressure near the $1,895 resistance level, with major players like Galaxy Digital and Paradigm reducing their ETH holdings.
Ethereum is showing renewed signs of life as network activity picks up and investors monitor key price levels. After a sluggish start to April, the second-largest cryptocurrency by market cap is gaining momentum—both on-chain and in the markets.
A Burst in Ethereum Network Activity
Between April 20 and 22, the number of active Ethereum addresses jumped nearly 10%, rising from 306,211 to 336,366, according to CryptoQuant. This sharp increase is widely seen as a bullish signal, reflecting heightened interest and usage of the Ethereum blockchain. It also coincided with Ether’s price approaching $1,830 before encountering slight resistance.
The surge in activity is especially notable considering Ethereum’s foundational role in the altcoin space. With ETH serving as the backbone for thousands of decentralized applications (dApps), an uptick in its usage typically signals broader engagement with blockchain technology.
“Since Ether is the most important token in the altcoin ecosystem, what would happen if its price explodes? The answer: very likely, the entire ecosystem would move with it.”
Institutional Sell-Off Pressures ETH Price
Despite the rise in active addresses and positive momentum, Ethereum is facing significant headwinds from institutional investors. A large cluster of ETH supply—about 1.64 million coins—is concentrated around the $1,895 price level. This area has become a key resistance point, as many investors bought at this level during the November 2024 rally and are now looking to exit as prices recover.
Institutions are also trimming their exposure. Galaxy Digital recently transferred 65,600 ETH (worth $105.5 million) to Binance, reducing its holdings from 98,000 ETH in February to around 68,000 ETH. Similarly, Paradigm offloaded 5,500 ETH to Anchorage Digital, indicating broader caution among large investors.
Ethereum funds have mirrored this trend, with $26.7 million in outflows last week alone. Over the past two months, outflows have reached a hefty $772 million. Still, there’s a silver lining: year-to-date, Ethereum has maintained net inflows of $215 million, suggesting that long-term interest remains intact.
Ethereum’s network fundamentals are strengthening, even as institutional sell-offs weigh on short-term price action. If Ether can break through the $1,895 resistance level, the combination of growing on-chain activity and renewed investor interest could pave the way for the next major rally.
