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

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As a seasoned crypto investor with a decade of experience under my belt, I must admit that the current sentiment towards Ethereum (ETH) has me feeling a bit uneasy. However, I’ve learned not to let fear or excitement drive my decisions blindly. Instead, I always look for analysts’ opinions and trends before making a move.

The emotion associated with Ethereum (ETH) has sunk to its lowest point in a year because this significant cryptocurrency, ranked second by market value, has been unable to regain the $4,000 benchmark. Yet, despite the investor sentiment, certain analysts believe that ETH, known as the “King of altcoins,” is poised to initiate another bullish trend and reach new peak levels.

Ethereum Sentiment Drops To Yearly Low

Based on crypto analyst Ali Martinez’s assessment, Ethereum’s social sentiment has dropped to a one-year low as it battles to transform the $4,000 resistance into support. As stated in his post, this measurement reached its most pessimistic levels since December 18, 2023, during which time ETH was trading between $2,100 and $2,200.

The analyst highlighted that this situation resembles a “typical bullish signal,” as he observed that when public opinion reached its lowest point approximately a year ago, ETH’s price experienced a 30% increase in the subsequent weeks. By January 12th, ETH had surged to the significant level of $2,700, which marked an important step in its climb towards the March peak of $4,093.

Based on a similar trend, it’s possible that Ethereum could experience a significant increase in its value, reaching between $4,900 and $5,000 within the upcoming month. This potential rise might cause the current major resistance level to function as support over the following two weeks.

Martinez shared his perspective that the cryptocurrency’s growth will restart when ETH surpasses the $4,100 barrier, a level last observed in late 2021. Once this threshold is exceeded, he predicts that the price could be drawn towards $6,000.

This month, as the second-largest cryptocurrency exceeded the $4,000 barrier, it’s been finding difficulty in making that level a reliable support point. Its most recent effort to break out began earlier this week when Bitcoin (BTC) surpassed its previous all-time high.

As Bitcoin prices stayed above $107,000, Ethereum climbed to $4,100 but swiftly retreated to $3,900 before experiencing a setback to $3,800. Despite this dip, Ethereum still shows growth in the weekly and monthly outlook, achieving a 2.3% and 22.6% rise respectively.

Will ETH Break Past $4,000 This Month?

Altcoin Guidepoint notes that Ether is “approximately at a similar point where Bitcoin was around $70,000.” This significant level hasn’t been significantly breached for years. Over the past three years, Ether has faced rejection multiple times at the $4,000 mark, but it surged to its record high (peak) in 2021 when it was supported.

If it follows Bitcoin’s past trend, this cryptocurrency might reach its all-time high of $4,800 and then strive towards a new price milestone around $5,000. The analyst also pointed out that December and January are typically the strongest periods for altcoins.

Previously, Benjamin Cowen noted that the Ethereum-Bitcoin (ETH-BTC) correlation has been consistent with a pattern in which Ethereum typically demonstrates “enhanced vigor” during the period between December and January.

Regardless, Sherpa predicted that the ETH/BTC pair might experience one last significant drop (or “shakeout”) prior to rising and potentially staying up for several weeks or months. In order for this to happen, the token needs to surpass its recent peak at 0.041.

warns that surpassing the $4,000 barrier might necessitate “additional strong demand” due to a large seller consistently boosting the supply at this price point. He also emphasizes that maintaining the $3,800 level is crucial for the continuation of the upward trend.

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

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2024-12-19 12:40