Ether prices rose nearly 3% in the last 24 hours, reaching a high of $1,866 on April 1st. 1 billion as ETH exceeded $1,800.
ETH/USD 4-hour chart. Source: CointeLegraph/TradingView
Behind Ethereum’s bullishness today is a number of factors:
Launching privacy pools at Ethereum.
Reducing the supply of exchanges.
Ether’s market setup then refers to a 12% rebound.
Privacy Pool will be available on Ethereum
One of the most important drivers of Ether’s bullishness today is the launch of the privacy pool at Ethereum Mainnet.
GM Ethereum☀️
It is our great honor to announce the launch of the Privacy Pool Mainnet!
ETH users can now achieve privacy on the chain while separating them from illegal funds
It’s up to us now to all of us to make our privacy normal again 🫡
For more information, see this thread 👇pic.twitter.com/3njo0axod1
– 0xbow.io (@0xbowio) March 31, 2025
What I Know:
Announced by the developer at 0xbow.io, the privacy pool aims to enhance on-chain privacy while addressing regulatory concerns.
Unlike previous privacy mixers like Tornado Cash, which faced sanctions to enable illegal transactions, privacy pools use “association sets” to screen bad actors while maintaining user anonymity.
The new privacy tool is gathering support from Vitalik Buterin, co-founder of Ethereum.
Butarin, co-author of the original Privacy Pool Research Paper, expressed his confidence in the project and made one of his first deposits.
Market participants responded with enthusiasm, and Cryptolive called it a “privacy breakthrough” suggesting that the blockchain industry can “make privacy normalized again.”
“This is huge. We have the support of Vitalik Buterin, co-founder of Ethereum,” said the Duckai agent, adding that it could be a sign of an increase in adoption and use.
“Overall, I’m bullish about ETH. This launch could be a game-changer for the ecosystem.”
This development could increase the usefulness of Ethereum and attract more users and developers to the network, which could drive the demand for ETH.
Reduce the exchange’s ETH supply
Another factor supporting ether performance today is reducing the supply of exchanges.
Important takeouts:
The exchange’s ETH balance has hit its nine-year low of ETH of 18.3 million after a nearly 5% decline in the last 30 days.
These are the last levels seen in July 2016 when ETH was below $15.
As shown in the chart below, the exchange’s ETH supply has resumed its downtrend.
ETH supply on exchanges. Source: Cryptoquant
The decline in exchange supply suggests that holders will transfer ETH to cold storage or staking, reducing the distribution supply available for transactions.
Furthermore, crypto whales are quietly accumulating ETH in anticipation of serious upward movements.
As can be seen in the chart below, ETH influx into accumulation addresses has skyrocketed to multi-year highs, surpassing the levels seen before the major bulls run.
Ethereum accumulation addresses are specific categories of wallet addresses used to track long-term holdings.
ETH flows into the storage address. Source: Cryptoquant
Related: Zklend Hacker claims to lose stolen ETH to tornado cash phishing sites
ETH prices nurture V-shaped recovery
Ether’s price action has been attempting a V-shaped recovery chart pattern on its 4-hour chart since March 25th, as shown below.
A V-shaped recovery is a bullish pattern that forms when assets rise sharply after a sharp decline.
It’s complete when the price moves to the resistance above the V layer, also known as the neckline.
ETH appears to be on a similar orbit, and is now below the $1,900-$2,000 supply and demand zone. A simple moving average (SMA) sits for 50 days, 100 days and 200 days.
This suggests that the Bulls will need to push up the price above this area to increase the likelihood that they will reach the neckline for $2,100 to complete the V-pattern.
This represents a 12% increase from the current price.
ETH/USD daily chart. Source: CointeLegraph/TradingView
Meanwhile, the Relative Strength Index (RSI) has risen to 56 from its 9pm sales conditions on March 31 at the time of writing, suggesting that bullish momentum is recovering.
This article does not include investment advice or recommendations. All investment and trading movements include risk and readers must do their own research when making decisions.
