Ethereum analysts are warning of significant downside risks, with projections suggesting a potential 20% price drop toward $1,700. The concerns stem from rising Ether supply on exchanges and a decline in demand for Ethereum ETFs, which have seen outflows totaling $190 million over the past four days. This influx of ETH onto platforms like Binance, where reserves increased sharply, indicates distribution by large holders, further complicating upward price momentum.
The technical outlook for Ether is grim, as it has failed to break through the resistance level of $2,400, despite a recent recovery from lows below $1,800. The formation of a rising wedge pattern suggests a potential drop to $1,725, which aligns with previous macro lows. Analysts caution that any short-term rebounds may merely serve to distribute holdings rather than signal a bullish reversal, indicating ongoing volatility and bearish sentiment.
For market professionals, the key takeaway is to monitor ETH’s price action closely; a confirmed breakdown below $2,280 could trigger further selling pressure, reinforcing bearish trends in the near term.
Source: cointelegraph.com