Ether (ETH), currently struggling to break the $1,700 barrier, is facing increasing concerns from market analysts regarding a potential new wave of selling pressure. With recent trading data reflecting notable declines in futures open interest and diminished demand, experts are closely monitoring the cryptocurrency's trajectory as it approaches critical support levels.
In the past month, Ether's futures open interest plummeted by 31%, dropping to a year-low of $10.3 billion from $15 billion. This marked decline—accompanied by slumping demand—has prompted predictions that ETH could retrace to $1,400 if current trends persist. Analysts point to rising exchange inflows as a signal that selling activity may intensify, particularly as Ether grapples with significant resistance.
Weak Market Indicators Suggest Caution
Crypto analyst Pelin Ay highlighted that net inflows of approximately 57,700 ETH into Binance—one of the leading cryptocurrency exchanges—are indicative of a potentially bearish sentiment. Large inflows into liquid exchanges like Binance often suggest that holders may be preparing to liquidate their assets.
Furthermore, Ay noted a stark reduction in new participants, with only around 320 new ETH depositors registering recently. This stark contrast to previous demand surges underscores a troubling trend wherein new capital is not sufficiently entering the market.
A Deeper Look at Futures and Derivatives
Futures data reveals that traders have also been less convinced of upward momentum, as leverage ratios have retreated significantly. The estimated leverage ratio, which peaked at an all-time high of 1.10 on June 2, has since fallen to 0.83—the most considerable unwinding since October 2025.
This decline in leverage typically translates to reduced volatility and speculative enthusiasm, yet it also indicates a growing uncertainty among traders regarding Ether's short-term prospects. Currently, ETH trades in a critical zone between $1,700 and $1,400, with the lowest recorded price from April 2025, positioned at $1,384, presenting a vital liquidity obstacle.
Technical Indicators Offer Mixed Signals
Despite bearish sentiment, some analysts suggest that ETH may be nearing a technical bottom. Recent data from trading analysis reveals the weekly relative strength index (RSI) has dipped dramatically to near 31, recovering from a record low of 11 during the latest sell-off. This potential for bottoming could provide a glimmer of hope for existing holders, yet uncertainty looms as traders remain vigilant.
With the ETH/BTC trading pair trending lower, market participants are urged to keep a close watch on this metric as it could provide further insights into Ether's demand dynamics. The convergence of sellers and buyers within the $1,400 to $1,700 range indicates that the coming days could be pivotal for Ether's price sustainability.
As Ether eyes its next pivotal juncture, the potential for a renewed selling wave looms—a testament to the ever-shifting landscape of the cryptocurrency market.
Source: Cointelegraph