Market analysts believe that Ether ($ETH) faces “downside risks” that could trigger a further 20% downtrend towards $1,700, a new analysis said.
Important points:
- Increasing Ether supply on exchanges and decreasing ETF inflows suggest possibility $ETH Prices are likely to fall in the coming days.
- Ether’s rising wedge pattern predicts a potential 22% decline to $1,725
$ETH Increased inflow to exchanges
Ether has rebounded 40% from its multi-month low below $1,800. It weakened due to resistance from the $2,400 level.
Analysts outline several Why Ether can’t break above $2,400This includes “significant” inflows to exchanges, according to CryptoQuant analyst BorisD.
The graph below shows a sharp increase. $ETH From May 5th to May 9th, the reserves held on Binance increased from 3.36 million to 3.84 million.
analyst explained Amid accelerating capital inflows, “price trends did not show a strong continuation of the upward move,” he said, noting that the price fell 7% from $2,390 to $2,260 over the same period.
“This suggests that liquidity was being absorbed and distributed within the range,” BorisD said, adding:
“The broader structure shows that downside risks remain dominant for now.”
$ETH Binance exchange reserves. Source: CryptoQuant
Other analysts see the possibility of a fresh rally in the coming days, but added: “These moves may primarily serve distribution purposes rather than indicating the start of a strong bullish trend.”
Fellow analyst PelinayPA has a similar view. said short-term rebound $ETH “Higher volatility will then follow, followed by a broader downtrend,” it added.
“A large amount $ETH Moving onto exchanges continues to create significant resistance to price increases. ”
This coincided with a sharp inflow into the exchange as the change in Ether net positions between exchanges increased to 585,000. $ETH May 13th was the biggest spike since December 2025. $ETH It was on the market for $3,000. This was before it fell 42% to $1,750 in February.
$ETH: Change in foreign exchange net position
Such inflows typically indicate distribution by large holders who move or redeem their tokens from cold storage. $ETH investment products.
Meanwhile, demand for spot Ethereum ETFs continues to decline, with these investment products recording total outflows of $190 million for the fourth day in a row. This indicates a decline in demand from US investors, further increasing the headwinds for Ether.
spot $ETH ETF flowchart. Source: SoSoValue
Ether Rising Wedge Target $1,725
Looking at the daily chart, $ETH/USD validated the breakdown of an ascending wedge after price broke the support provided by the lower trendline of the $2,280 pattern.
If a daily candlestick closes below this level, that breakdown will be confirmed and the path for Ether to fall toward the measured target of the $1,725 wedge, which represents a 22% decline from the current price, becomes clear. This matches the previous macro low recorded on February 6th.
$ETH/USD daily chart. Source: Cointelegraph/TradingView
A rising wedge is generally a bearish reversal pattern, and it is “starting to be concerned” that ether will break below the pattern, said analyst Shango Trades. said In recent X posts.
Zoom out, fellow analyst CryptoBullGod said $ETH As shown in the weekly chart below, there is a possibility of a fall to the bear flag measurement target of $1,280.
$ETH/USD weekly chart. Source: CryptoBullGod
This article was created in accordance with Cointelegraph’s editorial policies and is for informational purposes only. It does not constitute investment advice or recommendations. All investments and trading involve risk. Readers are encouraged to do their own research.
