Ethereum’s inability to establish a strong foothold above $2,000 continues to dampen investor sentiment, causing many traders to keep their assets liquid in case of a potential selloff.
This cautious stance is reflected in ETH withdrawals from exchanges, which have plunged to a seven-month low.
ETH Exchange Activity Signals Growing Bearish Sentiment
An assessment of Ethereum’s exchange transaction dominance shows a significant decline in ETH withdrawals since late January. According to Glassnode, ETH’s exchange withdrawal transactions totaled 59,755 coins on Tuesday, marking its lowest single-day count since August 31.
When ETH withdrawals from exchanges drop, it means fewer investors are moving their holdings to private wallets or cold storage. This suggests they are not planning to hold the coin long-term. Instead, they are keen on keeping their ETH coins on exchanges; a trend that signals a readiness to sell.
At the same time, ETH deposits have climbed, confirming the increasing selling pressure in the market. According to Glassnode, the number of ETH coins sent to exchanges has surged by 10% since the beginning of March.
When an asset’s exchange deposits spike like this, more investors are moving their holdings onto exchanges, often in preparation to sell. As bearish sentiment grows weaker, these coins are sold for profit, putting more downward pressure on ETH’s price.
Will ETH’s Uptrend Hold? Bulls Face Resistance at $2,148
At press time, ETH is trading at $2,073, marking a 3% gain over the past week as part of the broader market recovery.
On the daily chart, the leading altcoin follows an ascending trendline, signaling sustained price growth. If bullish momentum intensifies and exchange withdrawals increase while deposits slow, ETH could maintain this trend and reclaim the $2,148 level.
However, if exchange activity remains unchanged and selling pressure rises, ETH risks breaking below the ascending trendline, potentially falling to $1,759.
Bitcoin (BTC) has faced a challenging start to 2025, recording its worst quarterly returns in seven years during Q1.
This significant downturn has left investors questioning whether now is the time to buy or sell.
Bitcoin’s Q1 Performance: A Seven-Year Low
Bitcoin’s performance in Q1 2025 has been its weakest since 2018, a year marked by a brutal bear market that saw BTC lose over 50% of its value. Data from Coinglass shows that Bitcoin’s performance in Q1 2025 has decreased by 11.82%. In Q1 2024, Bitcoin recorded an increase of more than 68%.
According to a March 31, 2025, Bitcoin’s price has declined from $106,000 in December 2024 to around $80,200 by late March 2025.
This drop reflects a combination of macroeconomic pressures and policy uncertainties, particularly following US President Donald Trump’s new tariff policies.
Amid this bearish backdrop, on-chain data reveals a contrasting trend: Bitcoin whales are accumulating. A post from Santiment on X, dated March 31, 2025, reported that the number of whale addresses holding 1,000 to 10,000 BTC has reached 1,993.
This is the highest since December 2024. This represents a 2.6% increase over the past five weeks, signaling growing confidence among large holders.
Bitcoin whale wallets continue growing in number. Source: Santiment
Glassnode reported on March 31, 2025, that trading activity among Bitcoin holders with a 3-6 month horizon has dropped to its lowest level since June 2021. This decline indicates that short-term holders either hold steady or exit the market, reducing selling pressure.
“Spending from BTC holders is at the lowest levels since mid-2021. This inactivity reinforces the idea that recent top buyers are holding their positions rather than exiting, despite recent volatility.” reported Glassnode.
Additionally, on the same day, Bitcoin’s supply on exchanges fell to 7.53%, the lowest since February 2018. Low exchange supply often correlates with long-term holding behavior, creating scarcity that can drive prices higher over time. Together, these metrics suggest that Bitcoin may be entering a phase of accumulation and consolidation.
Market analyst Axel Adler Jr. stated on X on April 1, 2025, that Bitcoin’s selling pressure has been exhausted. Adler predicts a consolidation range forming in April and May, suggesting that the market may stabilize before its next significant move.
Fidelity Research believes Bitcoin is gaining momentum for the next stage of its “acceleration phase.” Fidelity’s analysis draws on historical cycles, noting that periods of consolidation often precede major price increases. It is driven by institutional adoption and Bitcoin’s role as an inflation hedge.
This aligns with the whale accumulation trend and the decreasing exchange supply, pointing to potential upward momentum in the medium to long term.
Ethereum (ETH) is facing a sharp correction, dropping 11% over the past week as bearish momentum continues to dominate. The Relative Strength Index (RSI) remains weak, showing a lack of strong buying pressure, while the Directional Movement Index (DMI) confirms that sellers are still in control.
Additionally, the Exponential Moving Averages (EMA) are in a firmly bearish structure, suggesting that ETH could soon test critical support levels at $1,756 and potentially fall below $1,700 for the first time since October 2023.
ETH RSI Shows the Lack Of Buying Pressure
Ethereum Relative Strength Index (RSI) is currently at 34.4, recovering slightly after briefly dipping to 27.4 yesterday. The RSI has remained below the 50 mark for three consecutive days, signaling that bearish momentum is still dominant.
The RSI measures the speed and magnitude of recent price changes to assess whether an asset is overbought or oversold.
Typically, an RSI above 70 indicates overbought conditions, suggesting potential for a pullback, while an RSI below 30 signals oversold conditions, implying that selling pressure may be overextended and a bounce could be imminent.
With ETH’s RSI now at 34.4, it suggests that while the asset is still in bearish territory, the extreme selling pressure seen yesterday has eased slightly.
The brief dip below 30 signaled an oversold condition, which often leads to short-term relief rallies. However, for ETH to regain bullish momentum, the RSI would need to climb back above 50, indicating a shift in market sentiment.
Until then, any upward movement could face resistance, and the broader trend remains weak unless sustained buying pressure pushes ETH out of this bearish zone.
Ethereum DMI Shows The Current Downtrend Is Strong
Ethereum Directional Movement Index (DMI) chart shows that its Average Directional Index (ADX) is currently at 29.82, rising from 21.9 yesterday.
The ADX measures the strength of a trend, with values above 25 indicating a strong trend and readings below 20 suggesting a weak or nonexistent trend. Given the ADX’s sharp increase, it confirms that ETH’s ongoing downtrend is strengthening.
The +DI (positive directional index) has dropped to 15.4 from 23.1 in the past day, while the -DI (negative directional index) has surged to 37.8 from 27.3, reinforcing the dominance of sellers in the market.
With the -DI significantly above the +DI, it signals that bearish momentum is intensifying, and sellers continue to control ETH’s price action.
The decline in +DI suggests that buying pressure is weakening, making it more difficult for ETH to stage a recovery. Unless the +DI begins to rise and crosses above the -DI, ETH’s price is likely to remain under pressure.
Given that the ADX is nearing 30 and still climbing, the downtrend appears well-established, and any short-term relief rallies may face strong resistance before a meaningful trend reversal can occur.
Ethereum Is Still Struggling Below $2,000
Ethereum Exponential Moving Average (EMA) lines are displaying a strongly bearish setup, with short-term EMAs positioned below long-term ones.
This alignment confirms the continuation of downward momentum, with ETH having dropped over 11% in the last 24 hours. If the current trend persists, ETH could test the critical support at $1,756, a level that could determine whether further declines are imminent.
A breakdown below this support would expose Ethereum’s price to a potential drop below $1,700, a level not seen since October 2023, further reinforcing bearish sentiment in the market.
However, if ETH manages to reverse its downtrend, the first key resistance to reclaim would be at $1,996. A successful breakout above this level could trigger a stronger recovery, pushing ETH toward the next resistance at $2,320.
If bullish momentum accelerates, Ethereum could extend gains toward $2,546, a level that would mark a complete shift in trend structure.
For this to happen, ETH would need sustained buying pressure and a bullish EMA crossover, signaling a transition out of its current bearish phase.
Bitcoin (BTC) started the week with a pullback after testing the $105,000 milestone. As the correction continues, crypto airdrops provide a getaway opportunity for investors to join promising projects early.
This week’s top three crypto airdrops comprise Hedra, OneFootball, and Sonic, projects supported by strong funding, backers, and engaging participation methods.
Hedra
Hedra is one of the crypto airdrops this week. It is a blockchain service focused on decentralized identity and data sovereignty. The project aims to empower users with control over their digital assets.
Though not officially confirmed, its potential airdrop sparks interest due to Hedra’s novel approach to privacy and interoperability. The interest comes after the project raised $42 million from backers such as Andreessen Horowitz (a16z), Index Ventures, and Abstract Ventures.
On May 15, Hedra raised a $32 million investment, bringing its valuation to $200 million.
“We’re excited to share that Hedra has raised a $32 million Series A led by a16z, with Matt Bornstein joining the board. Existing investors, including a16z speedrun, Abstract, and Index Ventures, are also participating in the round,” Hedra Labs shared on X (Twitter).
Crypto participants should monitor Hedra’s testnet activities, engage in community tasks, and hold compatible wallets to maximize eligibility. Eligibility also entails interacting with the project by creating graphic content with AI.
According to Cryptorank.io, when they sign up, Hedra users get 300 credits to spend on creating pictures and videos.
Sonic
Sonic, a Layer-1 blockchain (formerly Fantom), will offer a confirmed airdrop of 190.5 million S tokens starting June 2025. This comes after the project raised $101.54 million from backers such as Galaxy, Hashed Fund, Arrington XRP, Softbank, Aave, and Signum Capital.
The airdrop distributes 25% of tokens immediately, with 75% vesting over 270 days via NFT airdrops. Recipients can trade these later or burn them for early access.
Sonic also announced the Sonic Shards NFT mint to users collecting shards deemed eligible for mint. The project is also running an active campaign with points farming.
“Shards. If you know, you know,” wrote Sonic Labs in a post.
Sonic airdrop farmers should track points via Sonic’s dashboard and engage in testnet tasks or Sonic Arcade.
BeInCrypto data shows Sonic’s S token was trading for $0.48897, down by over 4% in the last 24 hours.
OneFootball
Another crypto airdrop to watch this week concerns OneFootball, a blockchain-based platform for football fans. It offers rewards via its OFC token and comes after a $307 million capital raise.
Project backers include Union Square, Dapper Labs, Adidas, and Animoca Brands. OFC’s airdrop is in its second season and emphasizes fan engagement.
“Introducing OFC: Powering OneFootball on Base. We’re excited to announce OneFootball Credits ($OFC), the official token of OneFootball! Launching as an ERC-20 token, OFC operates on both Ethereum and Base,” OneFootball Club announced.
OneFootball’s airdrop campaign involves earning BALLS by completing daily check-ins, engaging social media, and playing games like OFC Champion.
