Ethereum saw a recent price recovery after dipping in early April.
The majority of ETH influx into the exchange of derivatives suggests potential hedges or short positions, historically previous price declines.
Global economic uncertainty is increasing Ethereum’s volatile outlook despite recent profits.
Ethereum is making headlines again. After a sharp drop earlier this month, the world’s second largest cryptocurrency shows signs of recovery. On April 9 alone, ETH jumped to 8.24%. It has risen by another 1.5% over the last 24 hours. However, fresh on-chain data has caused some concerns. There was a large and unusual trend in ETH to exchange derivatives.
Is this another dip warning sign?
Rocky April for Ethereum
Ethereum started the month at $1,821.51. On April 2nd, the price was temporarily mentioned at $1,957.94, but by the end of the day it had returned to $1,794.51.
From April 5th to 8th, ETH fell by more than 18.86%. However, since April 9, the market has shown signs of recovery with a profit of 7.82%.
The second week of April has settled down. Between April 7th and 13th, Ethereum rose 2.83%. This was a slight improvement compared to the previous week.
Still, over the past seven days, overall profits have been only 0.1%, indicating that the market remains cautious.
Big influx of derivatives: red flags?
Yesterday, more than 77,000 ETHs were moved to derivative exchanges, according to the Ethereum Exchange Netflow Chart. This is the biggest daily influx seen in March and April.
On the same day, the price of the ETH fell from $1,588.44 to $1,577.07. At one point, it even hit a low of $1,537.28.
Such influx usually suggests that traders are preparing for downside movements by hedging their positions or opening shorts.
This is not the first time I’ve seen this pattern. Similarly, an influx occurred on March 26th and April 3rd. In both cases, the market responded with a sudden revision.
From March 25th to 30th, ETH fell 13.05%. Another revision from April 4th to 8th continued, with the market down 18.92%.
Tariff tension and cipher volatility
Price fluctuations in Ethereum are also shaped by larger global issues. The US government’s aggressive tariff policy under the Trump administration has caused turbulence across major asset classes, including cryptocurrencies. Currently, the policy has a 90-day suspension, but uncertainty continues to affect investors’ feelings.
Since April 1, the overall Crypto market has declined by 0.38%, while the AltCoin market has declined by 4.42%. Ethereum alone saw a drop of at least 12.56% over the same period.
Ethereum Market Outlook: What Traders Should See Next
In recent years, Ethereum has increased by 90.8% in 2023 and 46.1% in 2024. However, this year has begun roughly. In the first quarter of 2025, ETH fell 45.3%. This contrasts with the first quarter 2024 and first quarter 2023, when the market rose 59.8% and 52.4% respectively.
Ethereum shows a short-term recovery, but a major exchange of influxes into derivatives is a potential warning sign. Coupled with ongoing global economic tensions, the short-term outlook remains uncertain.
For now, Ethereum investors must be cautious about both market charts and global headlines.
