Key Takeaways
Ethereum has broken above $4,700 as NVT and Open Interest support further upside. Meanwhile, short liquidations and leverage clusters point to continuation toward $5,000.
Ethereum’s [ETH] 30-day NVT ratio has plunged to unprecedented lows, reflecting record levels of network activity against its current market capitalization.
Historically, deep NVT bottoms have often preceded strong rebounds, as undervaluation signals typically invite renewed buying momentum.
However, such patterns have also coincided with unsustainable transaction spikes that failed to support lasting growth. This dual possibility leaves Ethereum at a critical juncture.
The extreme divergence between value and activity suggests investors must weigh whether current inflows represent true adoption or short-lived speculative churn.
Rising Open Interest signals growing speculative appetite
Ethereum’s Open Interest (OI) has climbed to $32.27 billion, marking a 4.11% rise in 24 hours, at press time. This steady increase reflects growing speculative positioning, with traders expanding both long and short exposure.
Historically, surging OI during bullish phases often amplifies volatility as leveraged players battle for control. If sustained, this growth suggests confidence in Ethereum’s breakout potential.
However, it also raises the risk of sharper liquidations, especially near clustered levels like $4,700. The market’s willingness to expand risk highlights Ethereum’s evolving role as traders prepare for decisive moves.
Source: CryptoQuant
Liquidation charts expose shorts under heavy pressure
Ethereum’s derivatives market reveals a striking tilt in positioning. The most recent data shows over $14 million in shorts liquidated against just $3 million in long positions.
This sharp imbalance suggests that bears are currently absorbing the heaviest losses, with bulls maintaining relative control.
Notably, repeated short squeezes often precede upward extensions, especially when open positions fail to reset at lower leverage.
However, while momentum favors buyers, a single wave of profit-taking could reverse conditions abruptly.
This underscores how fragile Ethereum’s liquidation landscape remains at current price levels.
Source: CoinGlass
Binance clusters now shift focus to higher battlegrounds
Binance liquidation data identified $4,700 as the critical pressure zone. With Ethereum now trading above this level, the focus shifts to the next clusters.
Heavy concentrations of leverage remain just above the breakout zone, meaning volatility could intensify as price probes higher ranges. If Ethereum holds momentum, cascading liquidations may drive swift continuation toward the $4,900–$5,000 corridor.
Conversely, if ETH failed to consolidate above $4,700 could trigger a sharp retest. Still, with shorts already squeezed heavily, the probabilities lean toward bulls keeping control in this phase.
Source: CoinGlass
However, Ethereum’s break above $4,700 confirms bullish dominance, supported by undervaluation on NVT, surging OI, and relentless short liquidations.
With Binance’s leverage clusters shifting upward, conditions strongly favor continuation toward $5,000.
The rare convergence of on-chain activity and derivatives data signals that Ethereum is entering a new expansion phase, with momentum firmly anchored on the buyers’ side.
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