Ethereum Sentiment Reaches One-Year Low Amid Potential Bullish Run
Sentiment for Ethereum (ETH) has reached a yearly low as the cryptocurrency struggles to reclaim the $4,000 mark. Despite this sentiment, some analysts indicate that ETH may be poised for a bullish run.
Ethereum Sentiment Drops To Yearly Low
Crypto analyst Ali Martinez reports that Ethereum's social sentiment has hit its lowest point since December 18, 2023, when ETH was trading between $2,100 and $2,200. This decline is viewed as a potential bullish indicator, with past patterns showing price rallies following similar sentiment lows.
Martinez noted that when sentiment bottomed out last year, ETH's price increased by approximately 30% in subsequent weeks, reaching $2,700 by January 12 and contributing to a rally that peaked at $4,093 in March.
Should Ethereum follow this historical trend, it could rise to the $4,900-$5,000 range within the next month, potentially establishing new support levels. The analyst highlighted that recovery above the $4,100 resistance, a level not seen since December 2021, would make $6,000 a likely target.
After briefly surpassing the $4,000 mark, Ethereum struggled to maintain support at this level. Its recent attempts to break out occurred alongside Bitcoin (BTC)'s performance, which reached above $107,000. Ethereum initially rose to $4,100 but faced a retracement to $3,900 and then $3,800. Despite these fluctuations, ETH recorded gains of 2.3% weekly and 22.6% monthly.
Will ETH Break Past $4,000 This Month?
Analyst Altcoin Sherpa compared ETH's current position to Bitcoin's around $70,000, noting that ETH has struggled to break the $4,000 level over the past three years. If it mirrors Bitcoin's previous performance, ETH could approach its all-time high of $4,800 before targeting $5,000. December and January are historically strong months for altcoin performance.
Benjamin Cowen also mentioned that ETH’s pairing against BTC follows a familiar pattern of renewed strength during December and January.
However, Sherpa predicts a possible “final shakeout” for the ETH/BTC pair before an upward trend, requiring a break above the recent high of 0.041. Trader Skew emphasized that overcoming the $4,000 resistance will demand increased buying pressure due to significant selling activity at this level. Maintaining support at $3,800 is critical for sustaining the rally.
Currently, ETH is priced at $3,874, reflecting a daily decline of 2%.
