Cryptocurrency Analyst Predicts Ether Could Experience Rally Soon

A CryptoQuant analyst recently shared insights suggesting that Ether (ETH) may be on the verge of a rally based on metrics in the cryptocurrency’s futures market. The analyst, known as Shayan, pointed out a significant liquidation event in the ETH market, historically signaling potential price rallies as markets stabilize and spot buying pressure increases.

Earlier this month, ETH experienced a notable decline, leading to a 34% drop in value from $3,329 to $2,197. This downtrend sparked concerns among investors about the possibility of further losses. However, strong buying activity near the $2,100 level helped the asset bounce back to around $2,500, where it currently stands at $2,623.

Despite the recent recovery, data from the futures market suggests that ETH could be gearing up for a more significant rally. The sharp decline in price triggered a wave of long perpetual position liquidations, indicating a cooling off in the futures market as leveraged positions were cleared out. This development, combined with increasing spot buying pressure, could generate renewed interest in ETH.

Shayan believes that with the reset in the futures market and a potential resurgence in demand, Ethereum might be primed for a bullish surge in the long run. The stabilization of the market following the recent dip could attract new buyers and pave the way for a recovery.

While Shayan’s analysis paints a bullish picture for ETH, a closer look at the asset’s daily and hourly charts reveals a mixed outlook. Ether has shown strong support around the critical $2,100 level and a solid demand zone at $2,000, indicating investor confidence in its long-term prospects. However, resistance at the $2,800 level poses a challenge for further price appreciation, particularly considering the previous breakdown below this threshold during Ether’s recent decline.

The cryptocurrency market remains dynamic and full of uncertainties. While there are indications of a potential rally for Ether based on market metrics and analyst predictions, investors should exercise caution and closely monitor developments to make informed decisions in this volatile environment.