ETH Price Warning: What’s Happening Now?
Will ETH Hold The $1,700 Line?
Ethereum (ETH) is showing signs of weakness as it struggles to hold above key support levels. While there was a brief recovery earlier in the week, the broader sentiment remains cautious, with technical and on-chain signals pointing toward more downside.
Price Struggles Around Key Support
ETH managed to close above the important $1,861 support level on Tuesday, but the bounce didn’t last. The price dropped nearly 6% the next day and has since hovered around $1,800. At the time of writing, ETH is trading slightly lower at $1,790. If this trend continues, a retest of the $1,700 level—last seen in October 2023—seems likely.
The daily Relative Strength Index (RSI) is down to 37, well below the neutral level of 50. This suggests strong bearish momentum and limited buying interest in the short term.
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Institutional Moves Fuel Uncertainty
On-chain data shows a wave of ETH deposits into exchanges—often seen as a signal of potential selling. Grayscale, BlackRock, Wintermute, and others collectively moved over 60,000 ETH, worth more than $110 million, back to exchanges in the last 24 hours. This sudden influx of liquidity has raised fears of a sell-off.
However, not all the action was bearish. A whale purchased 6,500 ETH for $11.5 million using USDC, which may have helped prevent a steeper decline.
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Network Activity Slows, Burn Rate Falls
Ethereum’s network activity is also in decline. The number of active addresses has been falling since the start of the year. Along with this, transaction fees have dropped sharply, leading to the lowest ETH burn rate since the Merge.
The Merge introduced ETH burning to support a deflationary model. But after the Dencun upgrade, which reduced gas fees through data “blobs,” the burn rate plummeted, making ETH inflationary again.
Outlook Remains Cautious
Analysts say Ethereum’s current weakness is due to a mix of reduced network use, lower fees, and a declining burn rate. According to CryptoQuant analyst EgyHash, these combined factors are “exerting downward pressure” on ETH.
For now, Ethereum needs to reclaim and hold above $1,861 to build any recovery. Until then, the $1,700 support remains a critical level to watch.