Market analysts say Ether faces “downside risks” that could trigger another 20% downtrend toward $1,700.
Ether’s 40% recovery from multi-month lows below $1,800 was dampened by resistance at the $2,400 level. CryptoQuant analyst BorisD noted “significant” inflows into exchanges, with ETH reserves on Binance jumping to 3.84 million from 3.36 million between May 5 and May 9. As inflows accelerated, the price dropped 7% to $2,260.
“The broader structure still points toward downside risk remaining dominant for now,” BorisD said.
Fellow analyst PelinayPA warned that any short-term rebound would be “followed by high volatility, and then a continuation of the broader downtrend.” The Ether net position change among exchanges rose to 585,000 ETH on May 13, the largest spike since December 2025.
Demand for spot Ethereum ETFs continues to decline, with outflows totaling $190 million over four consecutive days.
The daily chart shows ETH/USD validating a rising wedge breakdown after breaching the support at $2,280. A close below this level could confirm a drop toward $1,725, representing a 22% decline from current prices.
Analyst ShangoTrades said the breakdown is “starting to become a concern,” while CryptoBullGod suggested ETH could drop to $1,280 based on a bear flag pattern on the weekly chart.
