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The sentiment surrounding Ethereum (ETH) has hit a low point in the past year, with the second-largest cryptocurrency struggling to break past the $4,000 mark. Despite this negative sentiment among investors, some analysts are optimistic that Ethereum, known as the King of altcoins, is gearing up for a bullish run towards new all-time highs.
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Ethereum Sentiment Hits Yearly Low
According to crypto analyst Ali Martinez, Ethereum’s social sentiment has reached its lowest levels in a year as it faces challenges in establishing $4,000 as a support level. Martinez notes that this negative sentiment is actually a bullish indicator, citing a similar scenario in December 2023 when ETH’s price surged by 30% after hitting rock bottom sentiment levels.
If Ethereum follows a similar pattern, it could potentially see a rally towards the $4,900-$5,000 range in the coming month, with a possibility of turning the $4,000 resistance into support within two weeks. Martinez predicts that once ETH clears the $4,100 resistance level, the path to $6,000 will become clearer.
Despite recent attempts to break past $4,000, Ethereum has struggled to maintain this level as support. The cryptocurrency made a push towards $4,100 earlier in the week following Bitcoin’s all-time high, but eventually retraced back to $3,900 before correcting to $3,800. However, ETH still shows gains in its weekly and monthly performance, with a 2.3% increase in the weekly timeframe and a 22.6% increase in the monthly timeframe.
Will ETH Break $4,000 This Month?
Analysts like Altcoin Sherpa suggest that Ethereum is currently at a crucial point, similar to where Bitcoin was at $70,000, a level it struggled to break for years. While ETH has faced rejection at the $4,000 level multiple times in the past three years, it managed to reach its all-time high in 2021 after holding this level.
If Ethereum mirrors Bitcoin’s performance, it could potentially surge to its $4,800 all-time high before setting its sights on the $5,000 price target. Analysts also point out that December and January historically tend to be strong months for the altcoin market.
However, there are cautionary notes from analysts like Sherpa, who foresee a final shakeout in the ETH/BTC pair before a potential upward trend. Breaking past the recent 0.041 high will be a key milestone for Ethereum to continue its rally. Skew, another trader and analyst, warns that overcoming the $4,000 resistance will require substantial buying pressure, as there are significant sellers looking to offload their holdings. Maintaining the $3,800 level is crucial for sustaining the bullish momentum.
At the time of writing, ETH is trading at $3,874, reflecting a 2% decline in the daily timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com