Analysts Warn of Selling Pressure as Ether Fails at $1,700

Analysts flagged renewed downside risk for Ether after recent on-chain and derivatives metrics weakened. Binance recorded net inflows of roughly 57,700 ETH over the past few days, and futures open interest fell to $10.3 billion from about $15 billion a month earlier.

Crypto analyst Pelin Ay noted the large exchange inflows and said the number of new ETH depositors is near 320 addresses, well below levels seen during prior demand surges. The lower count of new depositors indicates limited fresh capital entering the market.

Futures participation cooled sharply. Aggregate ETH futures open interest declined about 31% from a month earlier to $10.3 billion, the lowest across exchanges since April 2025. The estimated leverage ratio dropped to 0.83 from an all-time high of 1.10 on June 2, marking the largest leverage unwind since October 2025 when the metric slid from 0.72 to 0.56.

Daily ETH issuance remains near 2,791 ETH since the 2021 EIP-1559 upgrade. The recent increase in exchange supply offsets some of the reduced issuance, affecting available sellable balances.

Price action reflected the deteriorating metrics. Ether’s weekly chart is down about 30% over the past 42 days and is trading inside a demand band between $1,700 and $1,400. The April 2025 low at $1,384 is the nearest external liquidity target if price weakness persists, followed by the January 2023 demand zone between $1,289 and $1,071.

Technical indicators are mixed. Weekly relative strength index readings sit near 31, while the daily RSI hit 11 during the recent sell-off, the lowest recorded level for ETH. The ETH/BTC pair continues to trend lower.

Pelin Ay warned, “Elevated net inflows raise the risk of another selling wave if Ether approaches resistance levels during any relief rally.” Trader Ardi observed, “Some bottoming signals are emerging after Ether touched the lower band of a long-term acceptance range that previously coincided with macro lows.”

Analysts point to rising exchange inflows, muted new depositor activity and a pullback in futures participation as the main factors behind concerns over renewed selling pressure if Ether cannot reclaim $1,700. Market participants are focused on the $1,400 to $1,700 range where buyers and sellers are most active.