Ether Faces Pressure as Analysts Warn of Impending Selling Wave Below $1.7K
By Abdus Salam
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Ethereum (ETH) is ensnared in a precarious predicament, as analysts warn of a possible resurgence of selling pressure beneath the key psychological level of $1,700. Recent data indicates a 31% plunge in Ether futures open interest, coupled with dwindling demand and significant exchange inflows, suggesting a turbulent path ahead for the cryptocurrency.
Over the past month, the crypto landscape has shifted dramatically for ETH, with Binance reporting net inflows of approximately 57,700 ETH. In tandem, the total futures open interest slipped to a year-low of $10.3 billion, significantly down from $15 billion earlier. This drastic decline signals a diminishing speculative fervor among traders, raising concerns over the token's price stability.
Analyst Pelin Ay highlighted a notable trend: while Binance has recorded substantial inflows, the number of new ETH depositors has plummeted to around 320 addresses—far below numbers observed during previous demand surges. This stagnation underscores a lack of new capital entering the market, leaving price stability precariously dependent on existing holders' sentiment.
Moreover, the current growth in Ether supply does not bode well for potential price recovery. Daily issuance remains low at 2,791 ETH following the EIP-1559 upgrade, yet the absence of new investment avenues is rendering the market increasingly vulnerable. Ay cautioned that elevated net inflows could precipitate another selling wave if Ether ventures too close to resistance levels during any relief rally.
The sentiment among futures traders has further soured, with Ether’s futures open interest dropping by about 31% to hit a staggering low since April 2025. The estimated leverage ratio has similarly diminished, down from an all-time high of 1.10 just weeks ago. This sharp downturn reflects a loss of conviction among participants and may result in less volatile trading conditions.
As of now, Ether continues to hover near its weekly demand zone, positioned between $1,700 and $1,400. Should bearish sentiment persist, the April 2025 low of $1,384 stands as a critical liquidity target. A further decline could expose support levels between $1,289 and $1,071, representing a significant area of interest for traders.
Despite these pressures, some market observers are detecting signs of potential stabilization, with crypto trader Ardi noting that ETH has recently approached the lower band of its long-term acceptance range. The recent capitulation has brought the weekly relative strength index (RSI) near critical lows, prompting speculation about a possible rebound.
As the market grapples with these unfolding dynamics, the ETH/BTC pair’s performance will be crucial. Conscious speculation persists that fluctuations within this pair may significantly influence broader market trends. For now, traders must navigate this volatile range, poised between optimism and caution as they keep a watchful eye on the $1,700 mark.
Source: Cointelegraph