ETH Eyes $1,700 Low, But Analyst Says the Real Story Is Long-Term Bullish

Shrinking exchange balances could tighten available ETH supply, adding another layer to the longer-term bullish argument.

Ethereum (ETH) is closing in on its February low near $1,700, after a broader crypto sell-off pushed it just below $1,900.

But while some traders are focusing on the risk of another leg down, one analyst is arguing that growing institutional interest in Ethereum’s infrastructure is a bigger story than the current price weakness.

Ethereum Approaching Key Support as Market Sentiment Weakens

According to crypto trader Bren, ETH is making “an impulsive run” toward its February low at $1,700 following what he described as corrective price action throughout March and April.

In a June 3 post on X, he said the market’s bullish expectations at the time did not match Ethereum’s behavior in the chart, and therefore, he expected another drop.

He added that there are two possibilities for him: the case of a double bottom in which the second-biggest coin in the world trades at the aforementioned $1,700 and then bounces back up, or where the prices fall further below that level. However, he did not give any definite predictions, instead saying that both cases would not affect his long-term outlook on ETH.

In his opinion, the combination of institutional adoption of stablecoins and real-world asset tokenization, layered on top of what he described as a world “obsessed with speculation and collecting,” is enough to keep him bullish on ETH until the end of the year.

And Bren is not alone in his optimism, as Electric Capital’s Avichal Garg also made a similar argument. According to him, Ethereum has a “credible neutrality” that can’t be replicated, and with countries like China, India, and Brazil actively looking for financial infrastructure not controlled by any single nation, a neutral settlement layer has genuine geopolitical value.

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“You talk to anybody on Wall Street,” he said, “everybody’s trying to build on ETH.”

Institutional activity is backing the two market observers in real time, with Lookonchain reporting earlier today that Bitmine, chaired by Fundstrat’s Tom Lee, had received another 25,000 ETH from BitGo, worth about $48 million, even as the asset’s price was falling.

Supply Trends and Institutional Adoption Support the Longer-Term Case

ETH’s current price reflects a drop of about 9.5% in the last week, and liquidations on June 3 were heavy, with data from CoinGlass showing more than $439 million in long positions were wiped out in 24 hours. Still, the structure of the market tells a more complicated story beyond the short-term price action.

According to CryptoQuant contributor CryptoOnchain, more than 32% of Ethereum’s total supply, approximately 39.5 million ETH, is now locked in staking. At the same time, they noted that exchange balances were reducing, which should cut the amount of ETH available for trading.

Meanwhile, Arab Chain pointed out that ETH funding rates on Binance have also jumped to their highest level since the start of 2026, reflecting a steep rise in leveraged long positions.

Per their assessment, that can be read two ways: that traders are positioning for a bounce or a crowded trade that becomes vulnerable if price keeps falling.