Analysts say that the price of Ether may decrease by 20%
Market analysts say Ether (ETH) faces “downside risks” that could lead to another 20% decline to $1,700, according to a new analysis.
Main Receptors:
An increase in Ether supply and a decline in ETF earnings in the coming days suggest that the price of Ether may decline in the coming days. Ether's rising wedge pattern predicted a 22% drop to $1,725.
ETH flows to exchanges will rise.
Ether's 40% recovery was from a multi-month low below $1,800. It weakened against the $2,400 level.
Analysts have listed several. Reasons why Ether failed to break $2,400Including those entering “significant” exchanges, according to CryptoQuant analyst Borisdy.
The chart below shows the significant increase in ETH reserves held on Binance to 3.84 million from 3.36 million between May 5th and May 9th.
The analyst He explained. As the flow picked up, “price action failed to show a strong upside, falling 7% to $2,260 from $2,390 over the same period.
Borisdi added: “This suggests that the amount of liquid was being absorbed and distributed across the region:
The broader structure still points to the downside risk of remaining dominant.
ETH exchange reserve on Binance. Source: CryptoQuant
While other analysts see the possibility of fresh losses in the coming days, “these moves may serve distribution purposes rather than signaling the start of a strong bullish trend,” the analyst added.
Making similar observations, co-analyst PelinayPA he said. Any short-term recovery in ETH will be “followed by high volatility and then a broader downtrend,” he said, adding:
“The large volume of ETH moving into exchanges continues to create strong resistance to higher price movements.”
This marks the largest increase since December 2025, when Ethernet's exchange rate reached 585,000 ETH on May 13, coinciding with the largest foreign exchange inflow since ETH was trading at $3,000. This was ahead of a 42% drop to $1,750 in February.
ETH: exchange net position change
Such flows typically indicate distribution by large holders, who move tokens from cold storage or redeem ETH investment products.
Meanwhile, spot demand for Ethereum ETFs continued to decline, as these investment products recorded four consecutive days of outflows, totaling $190 million. This suggests that interest from US investors has waned, adding to Ether's upside.
Spot ETH ETFs Flowchart. Source: SoSoValue
Ether's rising wedge targets $1,725
The daily chart shows ETH/USD confirming a rising wedge breakout, after the price breached the support provided by the lower pattern line at $2,280.
A daily candlestick below this level would confirm a breakout, clearing the path for Ether's drop to the wedge target at $1,725, representing a 22% decline from the current price. This matches the previous macro low reached on February 6th.
ETH/USD Daily Chart. Source: Cointelegraph/Trading view
Uptrends are typically bearish reversal patterns, and Ether's breakout below the system is “starting to get serious,” analyst Shango Trades said. he said. Recently in the X post.
Highlighting, fellow analyst CryptoBullGod he said. As seen on the weekly chart below, ETH could drop to $1,280, which is the target measured by the bear flag.
ETH/USD Weekly Chart. Source: CryptoBullGod
