Ethereum (ETH) sentiment has tanked to its 1 year lowest point as cryptocurrency battles to regain $4,000. Yet some analysts assert that negativity around the second largest by market cap cryptocurrency could herald a big rally.
But one crypt analyst, Ali Martinez, noted also that Ethereum’s social sentiment “a measure of public sentiment about said asset”—has fallen to its lowest since December 18, 2023. ETH was trading between $2,100 and $2,200 at that time.
Ethereum Sentiment Indicates Breakout
Martinez described this sentiment dip as a ‘classic bullish indicator’, which last year preceded a 30 per cent price increase that took Ether to $2,700 and then to $4,093 in March. If the level of $4,100 ETH holds and clears, according to historical patterns, it could reach $4,900-$5,000 in the next month, Martinez predicts. But he said that once the level is recovered, $6,000 will become a magnet.
Bitcoin’s record-breaking rise above $107,000 earlier this week followed Ethereum’s latest attempt to break past $4,000. ETH then briefly hit $4,100, dropping back to around $3,800. ETH’s pullback came despite the week and month results coming in on a weekly and monthly basis seeing 2.3 percent and 22.6 percent positive.
Ethereum’s trajectory was weighed in by other analysts. ETH is currently in a similar spot as when Bitcoin was doing the same thing around $70,000 leading up to a move to $4,800. Sherpa pointed out, however, that the long time period is likely to favor altcoins during December and January, however predicting that the ETH/BTC pair may enter into a short term dip in the next day or so before a sustained rally.
Trader Skew highlighted the need to maintain a hold of $3,800 support and said going above $4,000 would need ‘massive buying pressure’ to close over a large concentration of sell orders.
In December and January, as it does historically, Benjamin Cowen noticed ETH’s power as it relates to BTC.
Concluding that a move above $4,100 in Ethereum would be the catalyst to a rally towards new highs in the next few months, analysts tell me that while Ethereum climbs below key resistance levels currently, continue taking steps forward to new highs would redefine market dynamics for the months to come.
