Ethereum’s market dynamics in April 2025 are beginning to shift. Q1 2025 was a challenging quarter for ETH, where this token underperformed and became a meme. Now, new data suggests that selling pressure is fading.
This development has fueled speculation about whether bulls are ready to reclaim momentum, and if so, how far ETH could run.
Net Taker Volume Dips, Indicating Market Stabilization
Ethereum’s net taker volume has dropped to its lowest level since June 2024. This suggests a cooldown in active selling, especially among short-term traders. The exit of these sellers could mark the beginning of price stabilization, as long-term holders (LTHs) tend to exhibit more resilience and are less reactive to short-term volatility.
Historically, periods of low net taker volume have coincided with upcoming price reversals or consolidation phases, providing an opportunity for bullish accumulation. This seller fatigue, especially when paired with reduced liquidation pressure, creates a more favorable environment for price recovery.
Derivatives Market Activity And Funding Rates
Over the past few days, more than 77,000 ETH were transferred into the derivatives segment. This was the largest ETH derivatives inflows observed in the last 2 months.
Such spikes in ETH derivative inflows have often preceded price corrections, possibly linked to high-leverage positions and following liquidations.
Even leveraged long positions have faced heavy losses due to ETH's price decline. While leverage usage has decreased since March 2025, it remains high compared to late 2024, indicating ongoing risk in the market.
Further, ETH funding rates have turned negative, indicating that short sellers are now paying to maintain their positions. This is often interpreted as a bearish sentiment, but can also serve as a contrarian indicator if the majority are betting against the asset.
Although Ethereum’s estimated leverage ratio has cooled off since March’s peak, it still sits above Q4 2024 averages. This means that volatility could return quickly if bulls begin to challenge key resistance levels.
Wrapping Up
Ethereum’s current setup suggests that the worst of the selling may be over. If bulls can capitalize on this window of reduced pressure, ETH could reclaim its footing and begin a slow march upward.
Still, the presence of high leverage and exchange inflows remains a concern. Traders should watch closely for a break above key resistance levels and confirmation through volume before fully committing to a bullish bias.
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