Sentiment for Ethereum (ETH) is currently at a one-year low as it struggles to regain the elusive $4,000 level. Despite this gloomy outlook, analysts are optimistic, suggesting that the King of altcoins may be on the brink of a significant bullish run.
Crypto analyst Ali Martinez reports that Ethereum’s social sentiment has plummeted to its lowest since December 18, 2023, when the coin was trading between $2,100 and $2,200. Martinez refers to these negative sentiment levels as a classic bullish indicator. He reminds us that when sentiment hit rock bottom last year, ETH saw a phenomenal 30% price rally in the subsequent weeks, climbing to $2,700 by January 12. This initial surge played a crucial role in its journey to the March peak of $4,093.
If history repeats, we could expect Ethereum to leap into the $4,900 to $5,000 range within the next month. Post this surge, analysts foresee the $4,100 resistance transforming into support, a level not breached since December 2021. According to Martinez, achieving this milestone would make $6,000 an attractive target.
Despite attempts to break past the $4,000 mark, Ethereum has faced challenges, especially after a recent spike when Bitcoin (BTC) hit new heights. Following Bitcoin’s rise to over $107,000, Ethereum touched $4,100 temporarily, before retreating to $3,800. Yet, ETH remains in the green, marking gains of 2.3% and 22.6% for the week and month, respectively.
Will Ethereum manage to break through the $4,000 barrier this month? Trader Altcoin Sherpa believes ETH is in a position similar to where Bitcoin was around $70,000, highlighting its recurring struggles at this $4,000 threshold over the last three years. Should Ethereum echo Bitcoin’s journey, a climb towards its all-time high of $4,800 could be plausible, with the $5,000 mark serving as a significant price discovery target.
Analytics provided by Benjamin Cowen suggest that Ethereum historically regains momentum between December and January. In light of this, Sherpa predicts a possible final shakeout for the ETH/BTC pair before an upward trend, contingent on breaching the recent 0.041 high.
Trader Skew emphasizes the necessity of increased buying pressure to sift through the $4,000 resistance, noting persistent selling pressure that complicates entry into this price level. He also highlights the importance of maintaining the $3,800 level to keep the rally on track.
At present, Ethereum is trading at approximately $3,874, reflecting a 2% decline for the day. With the excitement of a possible turnaround, the crypto community is watching closely for any signs of momentum as Ethereum attempts to reclaim its standing in the market.
