A crypto analyst has expressed strong bullish sentiment on Ethereum (ETH), citing a highly favorable risk-reward ratio. The analysis highlights that ETH is only 18% above its 200-week exponential moving average (EMA), a level historically associated with price rebounds. The potential upside for ETH is estimated at 200%, with a worst-case drawdown of just 20%. Additionally, technical indicators, including an ascending channel and a liquidity cluster above $4,000, suggest that the price could be gearing up for a significant breakout.
Further on-chain data from Glassnode supports this outlook, revealing strong accumulation at key price levels. Investors have been purchasing ETH heavily around $2,632, with a larger cluster at $3,150, indicating confidence in further price appreciation. This trend suggests that rather than exiting positions, market participants are averaging down, reinforcing the bullish narrative.
Meanwhile, analysts point to Ethereum’s increasing buy pressure compared to Bitcoin. On-chain data from CryptoQuant shows ETH’s taker buy-sell ratio rising while BTC’s declines, signaling stronger buying momentum for ETH. Historically, such trends have allowed ETH to outperform Bitcoin in the short term. However, technical risks remain, with a need to maintain support above $2,600 to avoid a shift in market sentiment.
Despite short-term volatility, ETH’s overall market structure appears robust, with analysts predicting new highs in the coming months. The current accumulation phase and liquidity positioning indicate that Ethereum may see a significant upward move if key resistance levels are broken. However, investors remain cautious, monitoring broader market conditions and potential bearish signals.
