Probably aphid eggs, overwintering in the crevices of the bark formed by the wound shown.
Use grease bands to help prevent ants, which attack aphid predators.
You could try spraying the eggs with a horticultural oil, or try veg oil with a little soap mixed 1 part oil to 4 water, well shaken.
Don't think the leaves dropping are anything to do with the aphid eggs, more likely lack of, or too much of, water. Cherries like it reasonably well drained, they seem to like their roots to search out water (a long way!) which is why they can be a problem getting under house foundations, walls, pulling up paths etc etc.