Why is Ethereum (ETH) price up today?

Ether (ETH) price rallied nearly 3% over the past 24 hours, reaching a high of $1,866 on April 1. The top altcoin’s daily trading volume increased by 27% to $15. billion as ETH climbed above $1,800.

Several factors are behind Ethereum’s bullishness today, including:

• The launch of Privacy Pools on Ethereum.

• Reducing supply on exchanges.

• Ether’s market setup points to a 12% rebound next.

Privacy Pools launch on Ethereum boosts ETH price

One of the most significant drivers of Ether’s bullishness today is the launch of Privacy Pools on the Ethereum mainnet.

gm Ethereum ☀️

It is our great honor to announce the mainnet launch of Privacy Pools!

ETH users can now achieve on-chain privacy, while still dissociating from illicit funds

It is now up to all of us to Make Privacy Normal Again 🫡

More info in this thread 👇 pic.twitter.com/3nJO0AxoD1

— 0xbow.io (@0xbowio) March 31, 2025

What to know:

• Announced by developers at 0xbow.io, Privacy Pools aims to enhance onchain privacy while addressing regulatory concerns—a balance that has long eluded many blockchain projects. 

• Unlike previous privacy mixers like Tornado Cash, which faced sanctions for enabling illicit transactions, Privacy Pools use “Association Sets” to screen out bad actors while preserving user anonymity. 

• The new privacy tool has garnered support from Ethereum co-founder Vitalik Buterin himself. 

• Buterin, a co-author of the original Privacy Pools research paper, made one of the first deposits, expressing his confidence in the project. 

Market participants responded to this with enthusiasm, with Cryptolive calling it a “privacy breakthrough,” with sentiment suggesting it could “make privacy normal again” in the blockchain industry. 

“This is huge; it’s got the backing of Ethereum co-founder Vitalik Buterin,” said DuckAI Agent, adding that it could be a sign of increased adoption and usage. 

“Overall, I’m bullish on ETH – this launch could be a game-changer for the ecosystem.”

This development should increase Ethereum’s utility, potentially attracting more users and developers to the network, which in turn drives demand for ETH.

Reducing ETH supply on exchanges

Another factor supporting Ether’s performance today is reducing supply on exchanges.

Key takeaways:

• ETH balance on exchanges has reached a 9-year low of 18.3 million ETH after dropping nearly 5% over the last 30 days.

• These are levels last seen in July 2016 when ETH was trading below $15.

• The amount of ETH supply on exchanges has resumed its downtrend, as shown in the chart below.

• A decline in exchange supply suggests that holders are moving their ETH into cold storage or staking, reducing the circulating supply available for trading.

• Additionally, crypto whales are quietly accumulating ETH in anticipation of a significant upward move. 

• ETH inflows into accumulation addresses have surged to multi-year highs, surpassing levels seen before major bull runs, as seen in the chart below.

• Ethereum accumulation addresses are a specific classification of wallet addresses used to track long-term holding behavior.

Related: zkLend hacker claims losing stolen ETH to Tornado Cash phishing site

ETH price nurtures a V-shaped recovery

Ether’s price action has been attempting a V-shaped recovery chart pattern on the four-hour chart since March 25, as shown below.

• A V-shaped recovery is a bullish pattern formed when an asset experiences a sharp price increase after a steep decline. 

• It is completed when the price moves up to the resistance at the top of the V formation, also known as the neckline.

• ETH appears to be on a similar trajectory and now trades below a supply-demand zone between $1,900 and $2,000, where the 50-day, 100-day and 200-day simple moving averages (SMAs) sit.

• This suggests that bulls need to push the price above this area to increase the chances of reaching the neckline at $2,100 to complete the V-pattern.

• This would represent a 12% increase from the current price.

• Meanwhile, the relative strength index, or RSI, has risen from oversold conditions at 21 on March 31 to 56 at the time of writing, suggesting that the bullish momentum is picking up.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.