Ethereum consolidates above $4,700, fueled by a historically low NVT ratio indicating significant undervaluation. The open interest rises to $32.27 billion, as $14 million in shorts get liquidated compared to $3 million in longs. These bullish signals hint at a rally towards $5,000, driven by network activity and ETFs.
Ethereum (ETH), the second-largest cryptocurrency by market cap ($569 billion), is consolidating above $4,600, with a current price of $4,658 (+4.14% in 24h and a volume of $43 billion).
First, Ethereum’s 30-day NVT ratio (Network Value to Transactions) has fallen to a historic low, indicating that network activity (daily transactions ~1 million) far exceeds the current market cap, signaling undervaluation.
Historically, such low NVT ratios precede significant rebounds, as seen in 2021 (10x increase after NVT low). With DeFi TVL at $120 billion and upgrades like Pectra, ETH appears undervalued relative to its scalability utility (doubled blobs for L2s).
Additionally, ETH Open Interest has climbed to $32.27 billion, +4.11% in 24h, reflecting growing trader confidence in both long and short positions. On Binance, perpetual futures OI has reached $12 billion. This expansion, similar to May 2025 (OI at 4.44 million ETH), often precedes rallies. ETH is also boosted by spot ETFs, with approximately $8 billion in inflows during 2025.
Derivatives data shows a massive imbalance: $14 million in shorts liquidated vs $3 million in longs in 24h, the highest since August. On Binance, 70% of accounts are long, forcing a short squeeze that propelled ETH above $4,700.
This reflects bullish sentiment, with liquidations amplifying the rally ($388 million in August). However, it may also indicate short-term volatility and potential liquidation of long positions to the downside.
ETH is oscillating in a range between $4,200-$4,800, with resistance at $4,800-$5,000 (concentration of liquidity). A breakout supported by volume could drive a move up to $5,200.
As mentioned earlier, the excess of long positions could trigger a short-term drop to support between $4,450 and $4,400, representing a 4% decline from its current price.
In conclusion, the convergence of historically low NVT with rising OI and liquidated shorts positions ETH in a bullish momentum for the medium term, with an upside of 6% in the coming weeks. Caution remains necessary in the short term until $4,800 is maintained as support.
Ethereum is expected to reach $5,200 in the coming weeks. A correction between $4,500 and $4,400 would offer an opportunity to enter the market. Here’s how to acquire ETH on Zoomex with ease before its next rally:
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Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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