Ethereum analysts see ‘downside risks’ as bears eye 20% ETH price drop Ethereum analysts said that increasing supply on exchanges and declining ETF demand put ETH at risk of another leg down to $1,700.
Market analysts say Ether (ETH) faces “downside risks” that could trigger another 20% downtrend toward $1,700, new analysis said
Key takeaways: – Rising Ether supply on exchanges and declining ETF inflows suggested a possible ETH price drop over the coming days. – Ether’s rising wedge pattern projected a potential 22% drop to $1,725 ETH inflows to exchanges rise Ether’s 40% recovery from multi-month lows below $1,800 was dampened by resistance from the $2,400 level. Analysts have outlined several reasons for Ether’s inability to break $2,400, including “significant” inflows into exchanges, according to CryptoQuant analyst BorisD. The chart below shows a sharp increase in ETH reserves held on Binance to 3.84 million from 3.36 million between May 5 and May 9.
The analyst explained that as inflows accelerated, the “price action failed to show strong continuation to the upside,” dropping 7% to $2,260 from $2,390 over the same period. “This suggests that liquidity was being both absorbed and distributed within the range,” BorisD said, adding: “The broader structure still points toward downside risk remaining dominant for now.” ETH exchange reserve on Binance.