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Breaking News: Coinbase Confirms DOJ Investigation Following Major Security Incident

Sentiment For Ethereum Hits 1-year Low, Analyst Says A Massive Run Is Coming

Rubmar Garcia
Rubmar Garcia
5 months ago
3 mins read
ETH, ether, Ethereum

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Sentiment for Ethereum (ETH) has reached its lowest levels in a year as the second-largest crypto by market capitalization struggles to reclaim the $4,000 mark. Despite investors’ sentiment, some analysts suggest that the King of altcoins is about to kickstart its bullish run to new highs.

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Ethereum Sentiment Drops To Yearly Low

According to crypto analyst Ali Martinez, Ethereum social sentiment has hit a one-year low amid its struggle to turn the $4,000 resistance into support. Per the post, this metric reached its most negative levels since December 18, 2023, when ETH was trading around $2,100-$2,200.

The analyst pointed out that this is a “classic bullish indicator,” noting that when sentiment hit “rock bottom” a year ago, ETH’s price rallied around 30% in the following weeks. The cryptocurrency climbed to the $2,700 mark by January 12, a key level in ETH’s rally to the March high of $4,093.

If Ethereum followed 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 big resistance level into support in the following two weeks.

Martinez explained that the crypto’s rally will resume once ETH clears the $4,100 resistance, a level not seen since December 2021. Once this level is recovered, “$6,000 will become a magnet.”

After breaking past the $4,000 mark this month, the second-largest crypto has struggled to turn this level into support. Its latest breakout attempt occurred at the start of the week when Bitcoin (BTC) surpassed its previous ATH.

While BTC traded above the $107,000 range, Ethereum surged to $4,100 but quickly retraced to $3,900 before seeing a correction to the $3,800 level. Despite the pullback, ETH still registers gains in the weekly and monthly timeframes, recording a 2.3% and 22.6% increase, respectively.

Will ETH Break Past $4,000 This Month?

Altcoin Sherpa highlighted that ETH is “roughly at the same spot that BTC was at around 70K,” adding that it hasn’t “materially broken this level for years.” In the last three years, ETH has been rejected from the $4,000 level several times but ran to its all-time high (ATH) when it was held in 2021.

If it were to mirror Bitcoin’s performance, the cryptocurrency could see a run to its $4,800 ATH before aiming for its first price discovery target of around $5,000. The analyst also noted that December and January are the “best times” for the Altcoin market’s performance.

Similarly, Benjamin Cowen previously highlighted that ETH’s pair against BTC is “still following a familiar pattern” where Ethereum historically finds “renewed strength” between December and January.

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Nonetheless, Sherpa forecasted that the ETH/BTC pair would likely see one “final shakeout” before going “up for a few weeks/months.” To achieve this, the token must break past its recent 0.041 high.

Trader and analyst Skew warned that breaking past the $4,000 resistance will take “even more buying pressure” as this price has “some massive seller continuously topping up supply.” Lastly, he stated that holding the $3,800 level was key to continuing the rally.

As of this writing, ETH is trading at $3,874, a 2% decline in the daily timeframe.

Ethereum, ETH, ETHUSDT
Ethereum’s performance in the one-week chart. Source: ETHUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
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Rubmar Garcia
Rubmar Garcia

Rubmar Garcia

Rubmar is a writer and translator who has been a crypto enthusiast for the past four years. Her goal as a writer is to create informative, complete, and easily understandable pieces accessible to those entering the crypto space. After learning about cryptocurrencies in 2019, Rubmar became curious about the world of possibilities the industry offered, quickly learning that financial freedom was at the palm of her hand with the developing technology.

Read more

From a young age, Rubmar was curious about how languages work, finding special interest in wordplay and the peculiarities of dialects. Her curiosity grew as she became an avid reader in her teenage years. She explored freedom and new words through her favorite books, which shaped her view of the world. Rubmar acquired the necessary skills for in-depth research and analytical thinking at university, where she studied Literature and Linguistics. Her studies have given her a sharp perspective on several topics and allowed her to turn every stone in her investigations.

In 2019, she first dipped her toes in the crypto industry when a friend introduced her to Bitcoin and cryptocurrencies, but it wasn’t until 2020 that she started to dive into the depth of the industry. As Rubmar began to understand the mechanics of the crypto sphere, she saw a new world yet to be explored.

At the beginning of her crypto voyage, she discovered a new system that allowed her to have control over her finances. As a young adult of the 21st century, Rubmar has faced the challenges of the traditional banking system and the restrictions of fiat money.

After the failure of her home country’s economy, the limitations of traditional finances became clear. The bureaucratic, outdated structure made her feel hopeless and powerless amid an aggressive and distorted system created by hyperinflation. However, learning about decentralization and self-custody opened a realm of opportunities. Cryptocurrencies allowed her to experience financial control for the first time and expand her financial education.

Moreover, the peculiar nature of the crypto community sparked Rubmar’s curiosity about the other layers of the industry. As a result, she found a particular interest in discovering the diverse perspectives of investors, market watchers, experts, and developers. Her attempts to better understand the crypto space made her realize the strong links of the community with other industries, enriching her perspective of the sector. As someone who spends most of her day online, Rubmar enjoys finding the points where the crypto world meets with her other passions and hobbies ­–or her favorite memes.

In her free time, she usually finds joy in different art forms. As a child, she enlisted in every extra-curricular activity in her hometown, including music classes, dancing, jewelry making, and the local chorus. Despite her many attempts to learn different instruments, Rubmar only knows how to play the xylophone, which she played for 7 years in her school’s marching band.

She also has a passion for learning new languages and cultures, having set the goal to learn another six languages ­– currently attempting to learn Italian and Korean. Scrapbooking, paper crafting, and bookbinding are her biggest interests outside of work, constantly taking classes and attending workshops to learn new techniques. The rest of her free time is spent stressing over football matches and transfer market news or feeding cats –hers or stray.

In summary, Rubmar seeks to present entertaining and educational pieces to be enjoyed by everybody, aiming to report on the latest news and offer a unique perspective while adding a meme or a pun whenever possible.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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