Ethereum Sentiment Hits 1-year Low, Analyst Foresees 30% Run
Ethereum (ETH) sentiment has dropped to its lowest level in a year as the second-largest cryptocurrency by market capitalization struggles to regain the $4,000 mark. Despite the high investor sentiment, some analysts say the altcoin king is about to start bullish and hit new highs.
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Ethereum sentiment falls to yearly lows
According to cryptocurrency analyst Ali Martinez, Ethereum social emotions The stock has hit one-year lows as it struggles to turn resistance at $4,000 into support. According to the post, the metric reached its lowest level since December 18, 2023, when ETH was trading around $2,100-$2,200.
The analyst noted that this is a “classic bullish indicator,” noting that when market sentiment hit “rock bottom” a year ago, the price of ETH rose around 30% in the following weeks. By January 12, the cryptocurrency climbed to the $2,700 mark, a key level for ETH’s rally to the March high of $4,093.
If Ethereum Already following Following the same pattern, the cryptocurrency could jump to the $4,900 to $5,000 price range over the next month, with the potential for the next big resistance level to turn into support within the next two weeks.
Martinez explained that the cryptocurrency’s rally will resume once ETH breaks resistance at $4,100, a level not seen since December 2021. Once that level is restored, “$6,000 will be a magnet.”
After surpassing the $4,000 mark this month, the second-largest cryptocurrency has struggling Convert this level into support. Its latest breakout attempt occurred at the beginning of the week when Bitcoin (BTC) surpassed its previous ATH.
While BTC was trading above $107,000, Ethereum surged to $4,100 but soon fell back to $3,900 before retracing back to $3,800 levels. Despite the pullback, ETH still recorded gains on the weekly and monthly timeframes, rising 2.3% and 22.6% respectively.
Will ETH break $4,000 this month?
Altcoin Sherpa Highlight ETH is “roughly in the same position as BTC at around $70,000,” adding that it “hasn’t materially breached this level in years.” Over the past three years, ETH rejected It broke above the $4,000 level several times but rose to all-time highs (ATH) in 2021.
If it were to mirror Bitcoin’s performance, the cryptocurrency could rise to $4,800 before targeting a first price discovery target around $5,000. The analyst also noted that December and January were the “best periods” for altcoin market performance.
Likewise, Benjamin Cowen previously Highlight The ETH/BTC pair “still follows a familiar pattern,” with Ethereum historically finding “new strength” between December and January.
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Nonetheless, the Sherpas Predictive The ETH/BTC pair may experience a “final shakeout” before “a few weeks/months of gains.” To achieve this, the coin must break above the recent high of 0.041.
Traders and analysts tilt warn A break above $4,000 resistance will bring “increased buying pressure” as there are “some large sellers constantly replenishing supply” at this price. Finally, he stated that holding the $3,800 level is the key to continued gains.
As of this writing, ETH is trading at $3,874, down 2% daily.
Featured image from Unsplash.com, chart from TradingView.com
