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Sentiment for ethereum (eth) has hit its lowest levels in a year as the second-largest cryptocurrency by market capitalization struggles to reclaim the $4,000 mark. Despite investor sentiment, some analysts suggest that the king of altcoins is about to begin its bull run to new highs.
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ethereum Sentiment Falls to Yearly Low
According to cryptoanalyst Ali Martínez, ethereum <a target="_blank" href="https://x.com/ali_charts/status/1869369808002904417″ target=”_blank” rel=”nofollow”>social sentiment has hit a one-year low amid its struggle to turn $4,000 resistance into support. According to the publication, this metric reached its most negative levels since December 18, 2023, when eth was trading between $2,100 and $2,200.
The analyst noted that this is a “classic bullish indicator,” noting that when sentiment hit “bottom” a year ago, the price of eth rose around 30% in the weeks that followed. The cryptocurrency rose to the $2,700 mark on January 12, a key level in eth's rally to the March high of $4,093.
If ethereum were to follow the same pattern, the cryptocurrency could see a jump to the $4,900-$5,000 price range in the next month, potentially turning the next major resistance level into support in the next two weeks.
Martínez explained that the cryptocurrency rally will resume once eth surpasses the $4,100 resistance, a level not seen since December 2021. Once this level recovers, “$6,000 will become a magnet.”
After breaking through the $4,000 mark this month, the second-largest cryptocurrency has struggled to convert this level into support. Its latest breakout attempt came earlier in the week when bitcoin (btc) surpassed its previous ATH.
While btc traded above the $107,000 range, ethereum rose to $4,100 but quickly retreated to $3,900 before seeing a correction to the $3,800 level. Despite the pullback, eth still posts gains on the weekly and monthly timeframes, recording an increase of 2.3% and 22.6%, respectively.
Will eth surpass $4,000 this month?
altcoin sherpa <a target="_blank" href="https://x.com/AltcoinSherpa/status/1868812524940149198″ target=”_blank” rel=”nofollow”>highlighted that eth is “pretty much in the same place where btc was around 70K,” adding that it hasn't “materially surpassed this level for years.” Over the past three years, eth has been rejected several times from the $4,000 level but hit its all-time high (ATH) when it held in 2021.
If it were to mimic bitcoin's performance, the cryptocurrency could reach its ATH of $4,800 before targeting its first price discovery target of around $5,000. The analyst also noted that December and January are the “best times” for Altcoin market performance.
Similarly, Benjamin Cowen earlier <a target="_blank" href="https://x.com/intocryptoverse/status/1863357470925549707″ target=”_blank” rel=”nofollow”>highlighted that the eth pair against btc “still follows a familiar pattern” where ethereum historically finds “renewed strength” between December and January.
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However, the Sherpas <a target="_blank" href="https://x.com/AltcoinSherpa/status/1869404492065911220″ target=”_blank” rel=”nofollow”>predicted that the eth/btc pair would likely see a “final reshuffle” before “rising for a few weeks/months.” To achieve this, the token must surpass its recent high of 0.041.
Skew Trader and Analyst <a target="_blank" href="https://x.com/52kskew/status/1869404769128997010″ target=”_blank” rel=”nofollow”>warned that breaking through the $4,000 resistance will require “even more buying pressure” as this price has “some massive sellers continually increasing supply.” Finally, he stated that holding the $3,800 level was key to continuing the rally.
At the time of writing, eth is trading at $3,874, down 2% on the daily period.
Featured image from Unsplash.com, chart from TradingView.com
