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Sentiment for Ethereum (ETH) has reached its lowest levels in a year as the second-largest crypto by market cap struggles to reclaim the $4,000 mark. Despite investor sentiment, some analysts suggest that the king of altcoins is poised to restart its bull run to new highs.
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Ethereum Sentiment Falls to Yearly Low
According to crypto analyst Ali Martinez, Ethereum social sentiment has hit a one-year low amid its struggle to turn $4,000 resistance into support. According to the article, this metric reached its most negative levels since December 18, 2023, when ETH was trading between $2,100 and $2,200.
The analyst pointed out that this is a “classic bullish indicator,” noting that when sentiment hit “bottom” a year ago, the price of ETH rose by around 30 % over the following weeks. The cryptocurrency climbed as high as $2,700 on January 12, a key level in ETH’s rally to the March high of $4,093.
If Ethereum follows the same pattern, the cryptocurrency could see a jump into the $4,900-$5,000 price range next month, potentially turning the next big resistance level into support over the next two weeks.
Martinez explained that the crypto rally will resume once ETH breaks through the $4,100 resistance, a level not seen since December 2021. Once this level is reclaimed, “$6,000 will become a magnet.”
After surpassing the $4,000 mark this month, the second-largest cryptocurrency has struggled to turn that level into support. Its last breakout attempt took place earlier this week when Bitcoin (BTC) surpassed its previous ATH.
While BTC traded above the $107,000 range, Ethereum climbed to $4,100 but quickly returned to $3,900 before seeing a correction to the $3,800 level. Despite the pullback, ETH is still seeing gains on the weekly and monthly time frames, seeing an increase of 2.3% and 22.6%, respectively.
Will ETH surpass $4,000 this month?
Altcoin Sherpa pointed out that ETH is “around the same place as BTC, at around 70,000,” adding that it has not “materially exceeded that level in years.” Over the past three years, ETH was repeatedly rejected from the $4,000 level but reached its all-time high (ATH) while holding it in 2021.
If it were to mirror Bitcoin’s performance, the cryptocurrency could reach its ATH of $4,800 before aiming for its first price discovery target of around $5,000. The analyst also noted that December and January are the “best periods” for Altcoin market performance.
Similarly, Benjamin Cowen previously highlighted that the ETH vs. BTC pair “still follows a familiar pattern” in which Ethereum historically finds “renewed strength” between December and January.
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Nonetheless, Sherpa predicted that the ETH/BTC pair would likely experience a “final shake-up” before “going up for a few weeks/months.” To achieve this, the token must surpass its recent high of 0.041.
Trader and analyst Skew warned that breaking above $4,000 resistance would require “even more buying pressure” as this price has “massive sellers continually topping off supply.” Finally, he said that maintaining the $3,800 level was essential to continue the rally.
At the time of writing, ETH is trading at $3,874, down 2% on the daily time frame.
Featured image from Unsplash.com, chart from TradingView.com
