Ethereum (ETH) Derivatives Exchanges See +77,000 ETH Inflow

As per the data from the popular CryptoQuant, a staggering 77,000 $ETH have entered the derivatives exchanges, signifying considerable concerns about a sheer price dip

The cryptocurrency market is known for its rapid shifts in momentum, and in the ever-evolving realm of digital assets, derivatives play a pivotal role. As per the data from CryptoQuant, a staggering 77,000 ETH have flowed into derivatives exchanges.

This massive inflow, observed on April 16, has brought a note of concern among the investors. This is because such instances have formerly led to significant price slumps. For instance, analogous inflow surges have already taken place on April 3 and before that on March 26. Both the respective events were followed by sheer price plunges.

The crypto analyst, Amr Taha, in one of his recent posts, stated that the market data points toward a bearish response. The analyst has also pointed toward the hedging operations or the short positions opened by traders. Both of the former occasions saw swift downward price movements after the inflow upsurges. At the moment, Ethereum token is changing hands at $1,591.17, highlighting the near multi-month lows.

Escalating Macroeconomic and U.S.-China Trade Tensions Add to Ethereum’s Grim Outlook

Although the on-chain data presents a robust technical indication, it also aligns with the wider macroeconomic tensions. A few days back, China expedited the trade war against the U.S. with the implementation of latest tariffs on the imports from the U.S. Hence, these aggressive measures have led to a heightened volatility in the crypto market.

In previous such cases, capital has often shifted from volatile sectors into conventional safe-haven assets such as Treasury bonds, gold, and the U.S. dollar. Such geopolitical factors have reportedly played a crucial role behind Ethereum’s short-term bearish outlook.