Data shows institutional demand for Ethereum surged despite the recent crash Data shows institutional demand for Ethereum surged despite the recent crash

Data shows institutional demand for Ethereum surged despite the recent crash

with insights from IntoTheBlock

Institutional demand for Ethereum seems to be at an all-time high as many high-net-worth individuals appear to have taken advantage of the recent volatility to buy ETH. 

Data shows institutional demand for Ethereum surged despite the recent crash

Cover art/illustration via CryptoSlate

Ethereum (ETH) saw one of the most severe flash crashes that it has seen since the beginning of the year. The second-largest cryptocurrency by market capitalization saw its market value plunge by 18% within a few hours, shedding over 400 points. 

Its price went from hovering at a high of $2,319 to a two-week low of $1,900. 

The incident seems correlated with a coal and gas accident in Xinjiang, China, which caused a power outage. As Bitcoin miners were forced to shut down, the network’s hashrate fell by half, and all cryptocurrencies, including Ethereum, reacted quickly. 

More than $1.16 billion worth of long and short ETH positions were liquidated across the board. Despite the massive losses, it seems like institutional investors took advantage of the downswing to enter the market. 

Data from analytics tool Skew shows that CME’s Ether Futures volumes skyrocketed on Monday, Apr. 19.  

Daily volume surpassed $360 million in a single day, and total open interest crossed $220 million. This was the highest trading volume observed since CME launched its Ethereum futures on Feb. 8. Such market behavior suggests that institutions could have bought the ETH dip. 

CME Ether Futures by Skew
CME Ether Futures by Skew 

Ethereum faces no resistance

IntoTheBlock’s “In/Out of the Money Around Price” (IOMAP) model shows no supply barrier that will prevent Ethereum from recovering the losses incurred recently. Based on this on-chain metric, the only significant area of interest is $2,470, where roughly 3,800 addresses had previously purchased 17,100 ETH.

This area may have the ability to absorb some of the buying pressure seen recently. But if Ether can slice through this hurdle, it would likely aim for new all-time highs.

In/Out of the Money Around Price by IntoTheBlock
In/Out of the Money Around Price by IntoTheBlock

On the flip side, the IOMAP cohorts show that Ether sits on top of stable support. Over 300,000 addresses bought roughly 1 million ETH between $2,360 and $2,430. This crucial area of interest suggests that bears will struggle to push prices down. 

Right now, the odds favor the bulls.

At the time of press, Ethereum is ranked #2 by market cap and the ETH price is up 10.84% over the past 24 hours. ETH has a market capitalization of $280.07 billion with a 24-hour trading volume of $40.79 billion. Learn more ›

Ethereum

21 Apr at 4:48 pm UTC

$2,423.60

10.84%

ETHUSD Chart by TradingView

Ethereum On-Chain Analysis
Market summary

At the time of press, the global cryptocurrency market is valued at at $2.08 trillion with a 24-hour volume of $199.05 billion. Bitcoin dominance is currently at 50.43%. Learn more ›

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