Analyst: ETH may rise to $4,100 after a short-term pullback

BlockBeats News, January 16, according to Cointelegraph, futures market trends indicate that ETH may still have 10% to 25% upside potential. However, before any sustained rally forms, the market may first experience a price drop triggered by forced liquidations.

Crypto analyst Pelin Ay pointed out that there is a recurring structural pattern in Ethereum leverage dynamics: when the leverage ratio on an exchange quickly rises above the price, a brief lower shadow (wick) appears, clearing out excessively leveraged long positions, which is usually followed by a strong upward rebound. This pattern appeared multiple times in 2025, especially in February, April, September, and November. A similar situation also occurred in October, when a sharp rise in leverage ratio triggered a sudden sell-off, after which the trend continued.

Currently, Ethereum's leverage ratio is about 0.60, which is relatively high. Notably, despite the recent price increase, the leverage ratio has not decreased, indicating that market risk appetite still exists. Calculated from the current level, if there is a 25% rally, the ETH price will break through $4,100, but the likelihood of a minor pullback remains high.