Analysts are predicting a potential decline for Ether (ETH), with forecasts suggesting a drop of up to 20%, bringing prices down to approximately $1,700. Recent data indicates a notable rise in ETH reserves on exchanges, particularly on Binance, where holdings increased from 3.36 million to 3.84 million between May 5 and May 9, 2026.
Market conditions are challenging for Ether, as both the supply on exchanges and a decrease in ETF demand contribute to bearish sentiment. Following a recovery that saw ETH reach nearly $2,400 after hitting lows below $1,800, resistance at this level has hindered further gains. Analysts have pointed out that significant inflows into exchanges suggest a distribution phase rather than a sustained upward trend.
On May 13, the net position change among exchanges surged to 585,000 ETH, marking the highest increase since December 2025. This spike in inflows is reminiscent of a previous downturn when ETH fell from $3,000 to $1,750, indicating that large holders may be preparing to sell rather than buy.