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Sentiment towards Ethereum (ETH) has hit its lowest level in a year as the second-largest cryptocurrency by market capitalization struggles to regain the $4,000 level. Despite investor sentiment, some analysts are suggesting that the altcoin king is about to start a bullish move towards new highs.
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Ethereum sentiment falls to its lowest level in a year
Ethereum’s social sentiment has hit its lowest level in a year as the cryptocurrency struggles to convert resistance at $4,000 into support, according to crypto analyst Ali Martinez. According to the post, this indicator reached its first negative level since December 18, 2023, when ETH was trading around $2,100 to $2,200.
The analyst said this is a “classic bullish indicator,” noting that when the market hit “rock bottom” a year ago, ETH's price rose about 30% in the weeks that followed. did. The cryptocurrency rose to the $2,700 level by January 12, a key level in ETH's rise to its March high of $4,093.
If Ethereum follows the same pattern, the cryptocurrency could surge into the $4,900-$5,000 price range next month, with the next major resistance level likely to turn into support in the next two weeks.
Martinez explained that the cryptocurrency’s rally will resume once ETH crosses the $4,100 resistance, a level not seen since December 2021. If this level recovers, “$6,000 will become a magnet.”
After breaking through the $4,000 mark this month, the second-largest cryptocurrency is struggling to convert this level into support. The latest breakout attempt occurred earlier in the week when Bitcoin (BTC) surpassed its previous ATH.
While BTC was trading above the $107,000 level, Ethereum soared to $4,100, but quickly fell back to $3,900 before consolidating to the $3,800 level. Despite the pullback, ETH still recorded 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 highlighted that ETH is “in about the same position as BTC was at around 70,000,” adding that it “has not practically broken this level for years.” Over the past three years, ETH has been rejected from the $4,000 level several times, but reached an all-time high (ATH) when it held in 2021.
If Bitcoin’s performance is anything to go by, the cryptocurrency could rise to an ATH of $4,800 before aiming for its initial price discovery target of around $5,000. The analyst also pointed out that December and January were the “best time” for altcoin market performance.
Similarly, Benjamin Cowen previously stressed that the ETH vs. BTC pair “still follows a familiar pattern” and that Ethereum has historically found “new strength” in December and January. did.
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Nevertheless, Sherpa predicted that the ETH/BTC pair is likely to undergo a “last correction” before “rising for weeks/months.” To achieve this, the token would need to break above its recent high of 0.041.
Trader and analyst Skew said the price has “some large sellers continually replenishing supply,” so “further buying pressure” is needed to break through the $4,000 resistance. I warned you that you would need it. Finally, he said that maintaining the $3,800 level is key to continuing the rally.
At the time of writing, ETH is trading at $3,874, down 2% on the daily basis.
Ethereum 1 week chart performance. Source: ETHUSDT on TradingView
Featured image from Unsplash.com, chart from TradingView.com
