Ether Analysts Warn of Another Selling Wave as ETH Struggles Below $1.7K
Ether (ETH) faces potential selling pressure below $1.7K due to rising exchange inflows, declining futures open interest, and muted new demand, according to analysts.
Intelligence analysis by Gemini 2.5 Flash Lite
Analysts are forecasting another wave of selling pressure for Ether as key market indicators turn bearish. Significant inflows to exchanges like Binance, coupled with a sharp drop in Ether futures open interest and a retreat in leveraged positions, suggest that the cryptocurrency may struggle to maintain its current price levels.
Imagine Ether is like a popular toy. Lots of people are sending their toys to a big store (Binance), which might mean they want to sell them. Also, fewer new kids are asking to buy the toy, and the people who bet on the toy's price going up or down are being less risky. This could mean the toy's price might drop more if it can't get past a certain price point.
Analysis
Exchange Inflows Signal Potential Sell-Off
Analysts are closely monitoring Ether's (ETH) on-chain and derivatives data, which collectively point towards a potential increase in selling pressure. A significant observation is the net inflow of approximately 57,700 ETH into Binance, a major cryptocurrency exchange. Historically, large inflows to exchanges can precede selling activity, as holders may look to liquidate their assets. This influx of ETH onto Binance, without a corresponding surge in new demand, raises concerns about potential downward price movements if ETH attempts to rally towards resistance levels.
Furthermore, the number of new ETH depositors has remained notably low, around 320 addresses, which is considerably less than what was observed during previous periods of heightened demand. This muted participation suggests that the current price stability might be propped up by existing holders rather than attracting fresh capital. While daily ETH issuance remains relatively low post-EIP-1559, the elevated net inflows on exchanges present a cautious picture, indicating a heightened risk of a selling wave.
Derivatives Market Shows Cooling Interest
The derivatives market for Ether also exhibits signs of cooling. Ether futures open interest has seen a substantial decline, dropping by roughly 31% from $15 billion to $10.3 billion over the past month. This marks the lowest aggregate open interest across exchanges since April 2025. Concurrently, the estimated leverage ratio (ELR) has retreated significantly from its recent all-time high, indicating a reduction in speculative trading and weaker conviction among traders in the short term.
This deleveraging, while potentially reducing short-term volatility, also signals a decrease in aggressive bullish or bearish bets. The sharp unwind in leveraged positions, the largest since October 2025, suggests a more cautious market sentiment. This reduction in speculative activity could lead to less dynamic price action, but it also means that any significant price movement might require stronger fundamental catalysts or a broader market shift.
Technical Levels and Altcoin Sentiment
From a technical perspective, Ether's weekly chart shows a 30% decline over the last 42 days, with the price trading near a critical demand zone between $1,700 and $1,400. The April 2025 low at $1,384 serves as an immediate support level, with further potential downside targeting the demand zone between $1,289 and $1,071 from January 2023. Despite these bearish indicators, some analysts note emerging technical bottoming signals for altcoins, including ETH. The weekly Relative Strength Index (RSI) is approaching oversold territory, which could suggest a potential for a short-term bounce or stabilization.
However, the ETH/BTC pair continues its downward trend, which is a key metric to monitor for the broader altcoin market. The $1,400 to $1,700 range is identified as a crucial area where both buyers and sellers are actively engaged. The interplay of these technical levels, combined with the on-chain and derivatives data, will likely dictate Ether's short-to-medium term trajectory.
Key points
- Ether (ETH) is facing potential selling pressure as exchange inflows increase and futures open interest declines.
- Analysts note a lack of new demand, with low numbers of new ETH depositors.
- Derivatives data shows a significant drop in Ether futures open interest and a retreat in leveraged positions.
- Technically, ETH is trading near a critical demand zone, with potential downside targets if support breaks.
- The ETH/BTC pair's continued downtrend is a key indicator for the broader altcoin market.
If Ether can successfully defend its current demand zone between $1,400 and $1,700, and if new capital begins to flow into the market, it could signal a bottoming out. A sustained increase in new depositors and a reduction in exchange inflows would indicate renewed confidence and potentially lead to a price recovery.
The combination of significant exchange inflows, declining futures open interest, and muted new demand suggests a high probability of further selling pressure. If Ether breaks below the $1,400 support level, it could trigger a cascade of sell orders, potentially leading to a sharp decline towards the $1,000 range.
