As Bitcoin again gained momentum ahead of the halving event, the market is facing increased accumulation from whale investors. As a result, Ethereum has triggered notable surges as it regained its buying demand. Interestingly, several on-chain metrics for ETH have now turned bullish and are defending the ongoing correction on the price chart, aiming to send the ETH price toward resistance channels.

Ethereum’s Netflow Defends Price Correction

After the BTC price rallied toward $72K, Ethereum witnessed its price surpassing the $3.7K level in no time, resulting in a massive short-liquidation. However, since the Dencun Upgrade in mid-March, Ethereum’s price has struggled to climb back over the $4,000 mark, facing a sharp sell-off.

However, with the Bitcoin halving event approaching in less than 10 days, Ethereum traders are showing a notable uptick in leverage use. On April 8, Ethereum’s price saw a 7% increase, sending the leverage ratio to 0.29%, a peak not seen in the past 45 trading days since February 25. This surge in leverage during an uptrend indicates that traders are increasingly borrowing to enhance their positions, betting on Ethereum’s continued rise.

In the past few hours, the price of Ethereum (ETH) has been dropping significantly. Coinglass reports that there has been nearly $21 million worth of long liquidations in the last four hours alone. Despite the drop, there’s a noticeable increase in accumulation from holders as data from IntoTheBlock indicates that the Netflow metric dipped into the negative region, reaching -17.75K ETH. This suggests that more ETH is being withdrawn from exchanges than deposited, particularly after the price of ETH surged above $3,600.

This behavior is somewhat unusual during a surge, as holders typically deposit more ETH when they intend to sell, rather than withdrawing it. However, this could potentially strengthen the support levels for ETH’s price, making it challenging for sellers to plunge the price. 

What’s Next For ETH Price?

Bulls failed to hold the price above $3,700 level as sellers defended the resistance level strongly and plunged the price below immediate Fib channels. ETH price is currently declining heavily and is aiming for a retest of the $3,400 level. As of writing, ETH price is trading at $3,506, declining over 3.4% in the last 24 hours.

The ETH/USDT pair has dropped below the crucial mark of $3,500, warranting close attention. Should sellers successfully hold the price below this barrier, the pair may gain bearish momentum, potentially rallying towards $3,200-$3,300. However, anticipation persists for a bullish comeback at this level as a rebound above the EMA trend line might send the price to retest $3,700.

If ETH price successfully breaks above $3,700, it will trigger increased purchasing power, resulting in a jump toward $4K. A successful consolidation might strengthen confidence, resulting in further surges for ETH price toward $4,500.