Ethereum, breaks $1,700?... Bearish Forces Draw Their Swords as Exchange Inflows Explode

▲ Ethereum (ETH)

A warning has emerged that Ethereum (ETH) could be pushed down to the $1,700 level, hindered by increased exchange inflows and slowing ETF demand.

According to Cointelegraph on May 15 (local time), market analysts have diagnosed that Ethereum is exposed to further downside risk, and bearish forces could drag the price down to $1,700. Ethereum rebounded approximately 40% from multi-month lows below $1,800, but its upward momentum stalled after failing to break past the $2,400 resistance level.

CryptoQuant analyst BorisD pointed to increased exchange inflows as the reason Ethereum failed to break $2,400. Ethereum reserves held on Binance surged from 3.36 million ETH to 3.84 million ETH between May 5 and May 9. During the same period, Ethereum's price fell by 7% from $2,390 to $2,260.

BorisD stated, "The price action has not shown strong further upside," adding, "The broader structure currently points to downside risk still prevailing." He analyzed that even if a short-term rebound occurs, it might be more indicative of distribution than the start of a strong uptrend.

Another CryptoQuant analyst, PelinayPA, also noted that large volumes of Ethereum moving to exchanges are limiting upside. He stated that even if a short-term rebound appears, a larger downtrend could follow after high volatility, adding, "Large volumes of Ethereum moving to exchanges continue to create significant resistance to price upward movements."

Changes in exchange net positions were also presented as a sign of instability. Ethereum's exchange net position change rose to 585,000 ETH on May 13, marking the highest level since December 2025. At that time, Ethereum traded at $3,000, and subsequently fell by 42% to $1,750 by February. Cointelegraph reported that such inflows often indicate distribution by large holders.

Slowing ETF demand is also weighing on Ethereum. Ethereum spot ETFs recorded outflows for four consecutive trading days, with total outflows reaching $190 million. Cointelegraph explained that signs of weakening demand from US investors are increasing the upward pressure on Ethereum.

Bearish signals were also highlighted in technical charts. Ethereum's daily chart showed a breakdown, falling below the lower trendline of the rising wedge pattern located at $2,280. If Ethereum closes a daily candle below this price, it could fall to $1,725, representing a 22% drop from the current price. Analyst ShangoTrades commented that Ethereum's pattern deviation "is starting to become concerning." In a separate analysis, CryptoBullGod suggested that Ethereum could drop to $1,280 based on the bear flag target price on the weekly chart.

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