Top expert says Ethereum shows multi-year compression, falling leverage, and rising liquidity signals as ETH trades near $3,000.
Ethereum remained the focus of weekend crypto discussions on social media, following a detailed video shared by market analyst Cantonese Cat. The analyst reviewed Ethereum’s long-term structure, liquidity trends, and related public equities in a 27-minute breakdown.
The commentary centered on Ethereum’s prolonged consolidation and improving on-chain and derivatives signals.
At press time, CoinGecko data showed Ethereum trading at $3,025.25. The price rose 1.66% in 24 hours, however it declined 3.18% over seven days. Trading volume stood at $16.58 billion during the same period.
Ethereum Consolidation Signals Multi-Year Compression
Cantonese Cat highlighted Ethereum’s four-year sideways movement on annual charts. The analyst described the structure as an ascending triangle forming after extended deleveraging cycles.
According to the video, Ethereum opened the year near $3,330 and showed limited annual movement. That behavior contrasted sharply with earlier cycles marked by rapid volatility.
The analyst pointed to multiple inside candles on yearly timeframes. Those candles suggested compressed price action rather than trend exhaustion.
Additionally, Cantonese Cat noted that prior Ethereum cycles followed similar long consolidation phases. Each phase preceded sharp upside moves after liquidity conditions improved.
The video also referenced global M2 liquidity trends. Rising liquidity previously aligned with delayed but powerful Ethereum rallies. Cantonese Cat stated that current liquidity expansion appeared slower, yet more sustainable.
Deleveraging and On-Chain Data Support Accumulation Narrative
The analysis emphasized a steep drop in Ethereum derivatives exposure. Open interest reportedly declined by roughly 50% in recent months. That reduction followed sharp liquidations in April, October, and November.
Cantonese Cat explained that lower leverage reduced downside pressure.
Meanwhile, on-chain metrics showed network growth reaching yearly highs. Those figures supported ongoing accumulation during price consolidation.
Technically, Ethereum rebounded from $2,820 support. The price also tested resistance near $3,050 during recent sessions. The analyst highlighted higher lows and a developing base structure.
Related Reading: Ethereum Eyes $10,000 by 2027 as Wyckoff Accumulation Phase Develops
Ethereum-Linked Stocks Show Mixed Technical Structures
The video briefly examined several Ethereum-related equities. BTCS traded near $3.18 while forming a double-bottom structure. Cantonese Cat noted higher highs and higher lows on the chart.
BTBT traded around $2.23 and remained range-bound for over two years.
However, the analyst observed rising volume during prolonged price stagnation. That divergence suggested ongoing accumulation within the range.
SBET traded near $9.81 and approached a prior price gap. The analyst pointed to RSI divergence, indicating potential short-term stabilization.
Still, Cantonese Cat stressed that Ethereum’s price direction remained the primary driver.
Throughout the video, the analyst reiterated that Ethereum continued to lag broader equities. However, the structure mirrored earlier cycles that resolved after extended consolidation. The commentary concluded with a focus on market structure rather than short-term price targets.
Source: https://www.livebitcoinnews.com/ethereum-holds-3000-as-analyst-breaks-down-4-year-price-structure-heres-the-outlook/
