Ether Faces New Selling Wave Risk as ETH Struggles to Break $1.7K

The Ether (ETH) market is currently facing heightened concerns from analysts regarding a potential new wave of selling, driven by a series of negative indicators observed recently. ETH's struggle to breach the $1,700 level is fostering a cautious sentiment among investors.

Recent data reveals a net inflow of approximately 57,700 ETH to Binance, a leading cryptocurrency exchange, suggesting that more tokens are being moved to exchanges, potentially for sale. Concurrently, the number of new depositors entering the market has remained low, around 320, indicating limited new capital injection and weakening buying demand. Furthermore, Ether futures open interest has declined by 31% over the past month, falling from $15 billion to $10.3 billion. This represents the lowest level since April 2025, signaling reduced speculative demand and the unwinding of leveraged positions. The estimated leverage ratio also dropped from its all-time high of 1.10 on June 2 to 0.83, marking the largest leverage unwind since October 2025 and reflecting a decrease in traders' conviction.

These developments have significantly impacted ETH's price action. Ether has depreciated by approximately 30% over the past 42 days, finding it difficult to hold the critical $1,700 support level. Experts warn that a breakdown below this level could trigger a further decline towards the $1,550-$1,384 range, with some analysts identifying $1,400 as a potential correction target. On higher timeframes, the market structure remains bearish, with ETH trading below key moving averages, specifically the 100-day moving average near $2,100 and the 200-day moving average around $2,400.

Broader macroeconomic and geopolitical pressures are also influencing the cryptocurrency market. Escalating US-Iran tensions, a more hawkish stance from the Federal Reserve (Fed), and notable outflows from spot crypto exchange-traded funds (ETFs) have negatively affected overall market sentiment. Historically, June has proven to be a weak month for ETH, with losses recorded in seven out of the last ten years.

Market analysts suggest that if Ether successfully defends the $1,700 level, a rebound towards the $1,760-$1,800 range could occur. However, a daily close above $1,778 might pave the way for a more extended rally towards $1,942. Conversely, a weekly close below $1,850 could accelerate downside movement towards $1,560, confirming a broader bearish trend. Despite short-term weakness, institutional interest remains relatively stable, with some large investors accumulating ETH during market dips. Moreover, Ethereum's long-term roadmap, including two major upgrades (Glamsterdam and Hegotá) planned for 2026 and a total of seven upgrades through 2029, are considered positive factors for its future potential. Nonetheless, the $1,700-$1,800 range is viewed as a critical resistance cluster where sellers might re-enter the market.