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Ethereum Sentiment Drops To Yearly Low
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.
A Classic Bullish Indicator
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.
Will ETH Break Past $4,000 This Month?
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.
A New High and Beyond
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.”
Breaking Past $4,000
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.
A Potential Rally Ahead
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.
Conclusion
FAQs
Q: What is the current sentiment around Ethereum?
According to analyst Ali Martinez, Ethereum’s social sentiment has hit a one-year low.
Q: What is the potential outcome if Ethereum breaks past $4,000?
If Ethereum follows 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.
Q: What is the target price for Ethereum’s next rally?
Analyst Martinez predicts that once ETH clears the $4,100 resistance, the cryptocurrency could reach $6,000.
Q: What is the current price of Ethereum?
As of this writing, ETH is trading at $3,874, a 2% decline in the daily timeframe.
