Analysts: ETH may see short-term dip before potential rally to $4,100

Ethereum (ETH) could rally to $4,100, but it may first experience a short-term decline due to an overheated futures market, Cointelegraph reported, citing multiple experts. Crypto analyst Pelin Ay noted that ETH's current leverage ratio of 0.60 has historically preceded a brief drop to clear out over-leveraged long positions, followed by a strong rebound toward the $4,100 level. Meanwhile, Glassnode analyst Sean Rose observed that despite recent gains, ETH's realized losses still exceed profits, with its Spent Output Profit Ratio (SOPR) remaining below one. Rose suggested this indicates less conviction among ETH investors compared to those holding Bitcoin. The report also cited Hyblock data showing $500 million in long position liquidations clustered around the $3,100 price point, reinforcing the potential for a short-term drop. A stronger rally could follow such a liquidity sweep, the outlet added.