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Sentiment towards Ethereum (ETH) has reached its lowest levels in a year, as the second-largest cryptocurrency by market cap struggles to reclaim the $4,000 mark. Despite investor sentiment, some analysts suggest that the altcoin king is about to begin his upward march to new highs.
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Ethereum sentiment drops to yearly lows
According to cryptocurrency analyst Ali Martinez, Ethereum Social feelings It hit a one-year low as it struggled to turn $4,000 resistance into support. According to the post, this metric reached its most negative levels since December 18, 2023, when Ethereum was trading between $2,100 and $2,200.
This is a “classic bullish indicator,” the analyst noted, noting that when sentiment hit “rock bottom” a year ago, the price of Ethereum rose about 30% in the following weeks. The cryptocurrency rose to the $2,700 mark by January 12, a key level in ETH’s rise to a March high of $4,093.
If Ethereum He follows In the same pattern, the cryptocurrency could see a jump to the $4,900-$5,000 price range next month, which could turn the next major resistance level into support in the following two weeks.
Martinez explained that the crypto rally will resume once ETH clears the $4,100 resistance level, a level not seen since December 2021. Once that level is recovered, “$6,000 will become a magnet.”
After surpassing the $4,000 mark this month, it has surpassed the second-largest cryptocurrency Struggle To turn this level into support. Its latest breakout attempt occurred at the beginning of the week when Bitcoin (BTC) surpassed its previous ATH price.
While Bitcoin traded above the $107,000 range, Ethereum rose to $4,100 but quickly fell to $3,900 before seeing a correction to the $3,800 level. Despite the pullback, Ethereum still registered gains on the weekly and monthly time frames, registering increases of 2.3% and 22.6% respectively.
Will ETH cross $4,000 this month?
Altcoin Sherpa Highlight That ETH is “roughly in the same place as BTC was at around 70k,” adding that it “hasn’t meaningfully broken that level for years.” In the past three years, ETH unacceptable From the $4000 level several times but reached an all-time high (ATH) when it was held in 2021.
If it mirrors Bitcoin’s performance, the cryptocurrency could see a rally to $4,800 ATH before targeting its first price discovery target of around $5,000. The analyst also noted that December and January are the “best times” for altcoin market performance.
Likewise, formerly Benjamin Quinn Highlight The ETH/BTC pair “continues to follow a familiar pattern” with Ethereum historically finding “renewed strength” between December and January.
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However, Sherpa expected The ETH/BTC pair is likely to see a “final shakeout” before rising for “a few weeks/months.” To achieve this, the token must surpass its recent high of 0.041.
Trader and analyst deviation to caution Breaking above the $4,000 resistance level will require “more buying pressure” as this price is “continuously oversupplied by a large number of sellers.” Finally, he mentioned that maintaining the $3,800 level was key to continuing the rally.
As of this writing, ETH is trading at $3,874, which is a 2% decline on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
