Sentiment for Ethereum (ETH) has reached its lowest levels in a year as the second largest crypto by market capitalization struggles to regain the $4,000 mark. Despite the opinion of investors, some analysts suggest that the King of altcoins is about to start his bullish run to new heights.
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The exchange rate of Ethereum is going down against Ethereum
According to crypto analyst Ali Martinez, Ethereum social feeling has hit a one-year low amid its struggle to turn the $4,000 resistance into support. According to the post, this metric reached its most negative levels since December 18, 2023, when ETH was trading around $2,100-$2,200.
The analyst pointed out that this is a “classic bullish signal”, noting that when sentiment hit “rock bottom” a year ago, the price of ETH went up by around 30% in the following weeks. The cryptocurrency climbed to the $2,700 mark by January 12, a key level in ETH's rally to a March high of $4,093.
If Ethereum continue the same pattern, the cryptocurrency could see a jump to the $4,900-$5,000 price range in the next month, which could turn the next major resistance level into support in the following two weeks.
Martinez explained that the crypto's rally will begin once ETH clears against $4,100, a level not seen since December 2021. Once this level is recovered, “$6,000 will become a magnet .”
After breaking past the $4,000 mark this month, the second largest crypto struggle to turn this level into support. Its latest breakout attempt occurred at the beginning of the week when Bitcoin (BTC) surpassed the previous ATH.
While BTC was trading above the $107,000 range, Ethereum rose to $4,100 but quickly pulled back to $3,900 before seeing a correction to the $3,800 level. Despite the pullback, ETH continues to register gains in the weekly and monthly time frames, registering a 2.3% and 22.6% increase, respectively.
Will ETH break past $4,000 this month?
Sherpa Altcoin marked that ETH is “pretty much at the same place BTC was at around 70K,” saying it “hasn't materially breached this level for years.” In the past three years, ETH has been rejected from the $4,000 level several times but ran to an all-time high (ATH) when it was held in 2021.
If it were to mirror Bitcoin's performance,are were to see the cryptocurrency see a run to its $4,800 ATH before targeting its first price discovery target. The analyst also noted that December and January are the “best times” for Altcoin market performance.
Similarly, Benjamin Cowen previously marked that the ETH versus BTC pair is “still following a familiar pattern” where Ethereum historically experiences “renewed strength” between December and January.
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Nevertheless, Sherpa a rehearsal that the ETH/BTC pair would likely see one “final shakeout” before they “go up for a few weeks/months.” To achieve this, the indicator must pass the recent high of 0.041.
Skew trader and analyst warning that a break past the $4,000 resistance will “bring even more buying pressure” because “some big sellers are always pushing up to this price.” Finally, he said holding the $3,800 level was key to continuing the rally.
As of this writing, ETH is trading at $3,874, a decline of 2% in the intraday period.
Featured image from Unsplash.com, Chart from TradingView.com
