Cointelegraph’s market analysis reports that Ether (ETH) is still struggling to move above the $1,700 level. The article says analysts are warning of another “selling wave” as several market signals line up against ETH, including exchange inflows, slumping demand and a sharp pullback in futures positioning.
The report identifies exchange inflows as one of the pressure points for Ether. In crypto markets, inflows to exchanges are often monitored because tokens moved onto trading venues can become part of near-term sell-side activity. At the same time, weaker demand has left ETH with less support as it attempts to regain the $1,700 area.
Cointelegraph also notes a 31% drop in Ether futures open interest. Open interest measures the amount of futures contracts that remain unsettled, so a decline of that size shows a contraction in derivatives market participation. Together, exchange inflows, softer demand and the drop in ETH futures open interest form the basis for analysts’ warning that another selling wave could hit Ether.