ETH Charts Point To 25% Rally, But A Support May Happen First

Ether (ETH) is trading near $3,300, and analysis of its futures market suggests a potential 10% to 25% upside move is possible. However, this rally may be preceded by a short, liquidation-driven price dip. Crypto analyst Pelin Ay noted that when the Leverage Ratio rises rapidly, it often leads to downside wicks that flush overleveraged long positions, followed by strong upside reactions. Currently, the Leverage Ratio is elevated near 0.60, indicating persistent risk appetite, and pullbacks at this level have historically preceded significant rallies.

Further supporting the possibility of a dip, the ETH Spent-Output Profit Ratio (SOPR) remains below 1, suggesting realized losses outweigh profits, indicating weaker conviction among spot holders compared to Bitcoin. Technical analysis points to a potential retest of the order block between $3,050 and $3,170, which aligns with the point of control on the Volume Profile. This zone is also where significant net long concentration exists, increasing the likelihood of a short-term sweep into this range before a stronger continuation move above $4,100 can occur.

(Source：Cointelegraph)