Ethereum May Be Overlooked — But Data Shows Just One Turning Point

While many market participants have turned their backs on Ethereum ( ETH ) in recent months, the latest insights from the blockchain analytics firm Alphractal indicate that a shift may be underway. Despite ongoing sell pressure and bleak sentiment, deeper indicators show early signs of a potential reversal. Selling Pressure Slows Down The buy/sell Delta pressure from Alphractal shows that Ethereum is still under net selling pressure. The Delta remains negative, reflecting a market dominated by short sellers.

However, this trend is beginning to plateau — an early signal that the trend may be changing. Historically, such patterns often precede price recoveries, as the sell-off subsides, making way for accumulation. The Volatility is Forming The aggregate liquidation heatmap shows liquidity accumulation around key levels. A dense group of short sell orders near $4,400 indicates that a strong upward move could trigger a series of short sell orders, driving the momentum upward.

Meanwhile, long liquidation orders are stacking up just below $1,700, highlighting a potential bearish catalyst. The establishment of these two sides implies that volatility is not only expected — but is likely imminent. Improved Risk/Reward Profile The Sharpe Ratio chart of Alphractal is starting to show a more optimistic story. After a long period of low risk-adjusted returns, this ratio is now increasing. This indicates that the current price volatility of Ethereum is providing better rewards for the risk taken — a favorable condition for long-term investors.

Although the Sharpe Ratio has not yet reached its peak value during the bull market, it is beginning to reflect the behavior seen in previous phases of strong price increases. Ethereum In Risk Zone Strategy The normalized risk index (NRM) currently stands at 0.3969, placing Ethereum in the medium risk zone. This is far from the overheated conditions often seen at cycle peaks and instead reflects a more balanced, less exuberant environment.

Historically, this range marks the periods when patient capital flowed into the market, laying the groundwork for the next major move. Conclusion: Caution on the Surface, Opportunity Beneath Although Ethereum may not be attracting market attention at this moment, data from Alphractal shows a more promising outlook. Selling pressure is slowing down, volatility is possible, and risk-adjusted returns are improving. These quiet phases — often overlooked — have a history of providing the best risk-reward setups for informed investors. The market may have cooled down, but the potential of Ethereum is heating up. As usual, to be ahead means to monitor the data — not to follow the crowd.