Ethereum’s price has been stuck between $3,200 and $3,500 for months. Even with the rest of the crypto market moving up, Ethereum can’t seem to break free. This is a pretty big drop from its all-time high of $4,800 in late 2021 – a roughly 32% decrease. Even good news, like a new crypto-friendly government and clearer regulations, hasn’t helped much.
High Risk, High Reward?
A CryptoQuant analyst, ShayanBTC, points to something interesting: Ethereum’s leverage ratio is rising. This means traders are taking on more risk with borrowed money. High leverage makes the market more sensitive to price swings – a small move could trigger a much larger one, either up or down.
Shayan thinks this high leverage means a big price move is coming soon, but he’s not sure which way it will go. He says a breakout from this price range could cause a dramatic, fast price change. Because of all the leverage, liquidations (when traders are forced to sell) could cause a sudden, significant price jump or drop.
What’s the Outlook?
The current price range has everyone guessing what will happen next. While a bullish (upward) breakout seems more likely, Shayan warns that traders should keep a close eye on the leverage ratio. A sudden shift could lead to unexpected volatility and forced selling.
Recent Performance and Predictions
Right now, ETH is trading around $3,282, slightly down for the day. Surprisingly, trading volume has been pretty high recently, exceeding $24 billion daily, despite the lackluster price action.
Some analysts, like Javon Marks, are even more bullish. Based on past price patterns, Marks predicts a potential surge to $12,000 – a massive increase of around 240%! He believes Ethereum’s current situation mirrors a similar point in a previous bull market cycle. This could potentially trigger significant gains for other altcoins as well.
