Ether Faces Headwinds as Exchange Inflows Rise and OI Drops 31%
Rising exchange inflows and a 31% drop in futures open interest signal bearish sentiment for ETH.
Ether (ETH) continues to struggle below the $1,700 resistance level as on-chain and derivatives data point to increasing selling pressure. Exchange inflows have risen sharply while futures open interest (OI) has declined by 31%, suggesting traders are reducing exposure.
According to data from crypto analytics platforms, the amount of ETH sent to exchanges has spiked, often a precursor to sell-offs. Meanwhile, the drop in open interest indicates that leveraged positions are being unwound, reflecting a lack of conviction among bulls.
Analysts warn that the combination of rising exchange balances and falling OI could trigger another wave of selling. The ETH/BTC ratio has also slipped to multi-month lows, reinforcing the bearish outlook relative to Bitcoin.
At the time of reporting, ETH trades near $1,665, down 3.5% on the day. Market participants are closely watching whether support at $1,600 holds amid the current bearish signals.