- Market analysts warn of downside risks for Ether (ETH), citing significant inflows onto exchanges and declining ETF demand.
- Ether’s price failed to break the $2,400 resistance level amid a sharp rise in ETH reserves on Binance, suggesting distribution.
- A confirmed breakdown from a rising wedge pattern on the daily chart could trigger a 22% price drop toward $1,725.
- Ether exchange net position change recently saw its largest spike since December 2025, a period preceding a 42% price collapse.
Market analysts warn that Ether faces significant downside risks in the coming days, potentially triggering a renewed downtrend toward $1,700. This outlook follows its inability to break key resistance at $2,400, Ethereum” rel=”nofollow noopener”>according to reports linking the stall to accelerating exchange inflows.
Analysts observed a sharp increase in ETH reserves on Binance, rising to 3.84 million from 3.36 million between May 5 and May 9. CryptoQuant analyst BorisD explained that “the broader structure still points toward downside risk remaining dominant for now.” Consequently, any short-term rebounds may serve distribution purposes rather than signaling a bullish trend reversal.
The Ether exchange net position change spiked to 585,000 ETH on May 13, marking the largest inflow since December 2025. Such movements typically indicate distribution by large holders, creating significant resistance against upward price movements. Meanwhile, spot Ethereum ETF products have recorded four consecutive days of outflows, totaling $190 million and pointing to waning U.S. investor demand.
On the technical front, ETH/USD is validating a breakdown from a rising wedge pattern on the daily chart. A confirmed close below the $2,280 support level would project a measured drop toward $1,725, representing a 22% decline. Analyst ShangoTrades said this break is “starting to become a concern.”
Zooming out on the weekly chart, another analyst, CryptoBullGod, said a bear flag pattern could see ETH drop as low as $1,280. This extended bearish outlook underscores the mounting pressure from both on-chain and technical indicators.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
