Ethereum leverage ratio is at a high level; a strong liquidation shakeout may occur before the rebound.

YieldWhisperer · 2026-01-16T01:10:13+00:00

Ethereum may have a 10%-25% upside in the short term, but it could experience a decline triggered by a round of forced liquidations before the rebound. Analysts point out that there are patterned movements in Ethereum's leveraged trading, and after a price rebound, caution is needed for potential pullbacks. Currently, leverage ratios are high, and market greed remains.

YieldWhisperer

2026-01-16 01:10:13

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【Blockchain Rhythm】 Based on futures market signals, Ethereum may have an additional 10%-25% upside in the short term. However, before the rebound truly stabilizes, it might first experience a downward shakeout caused by forced liquidations.

Crypto analyst Pelin Ay observed an interesting phenomenon: recurring patterned actions in Ethereum leverage trading. Specifically, when the leverage multiple on a major exchange suddenly spikes above the price level, a prominent lower shadow appears—that’s actually a sign of over-leveraged buy orders being cleared. After the clearing, a strong rebound often follows. This pattern has repeated multiple times in 2025, occurring in February, April, September, and November. The surge in leverage in October also triggered a reversal after a sharp decline.

Currently, Ethereum’s leverage ratio is around 0.60, which is quite high. Interestingly, although the price has recently risen, the leverage ratio has not decreased, indicating that market greed is still present. According to this logic, if there is a 25% rebound, Ethereum could break through $4100. But be cautious not to get too excited too early—the risk of a minor correction is still quite significant.

ETH-0,05%

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