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Ethereum Tests $1,700 Support as Derivatives Activity Drops

Hawkish Federal Reserve signals have raised odds of a deeper fall unless large holders or ETF flows return to confirm a possible weekly RSI bottom.

Overview

  • Ethereum was trading around $1,740–$1,750 on Thursday while sitting on the $1,700–$1,750 zone that analysts say must hold to avoid a larger decline.
  • Futures open interest has fallen by about 2 million ETH to roughly 13.64 million ETH, a multi‑week low that shows fewer leveraged positions are active in the market.
  • Funding rates for ETH perpetuals have swung between positive and negative, a pattern that signals indecision between long and short traders rather than clear directional conviction.
  • On‑chain data shows large‑holder transactions have collapsed by about 86.6%, and US spot Ether ETFs recorded only modest inflows of roughly $9.6 million, leaving fresh buying support thin.
  • Technicals present a mixed picture with a rare weekly RSI bottom signal that needs higher volume or sustained closes above resistance to confirm and prediction markets now price a high chance of a drop toward $1,500 if support fails.