Sentiment for Ethereum (ETH) has hit a yearly low as the second-largest cryptocurrency by market capitalization struggles to regain the $4,000 mark. Despite investor sentiment, some analysts suggest that the altcoin king will soon start a bullish streak and reach novel highs.

Ethereum sentiment drops to yearly low

Ethereum, according to cryptocurrency analyst Ali Martinez social mood hit a one-year low amid efforts to turn resistance at $4,000 into support. According to the post, the indicator has reached its most negative level since December 18, 2023, when ETH was trading around $2,100-$2,200.

The analyst noted that this is a “classic bullish indicator,” noting that when sentiment bottomed out a year ago, the price of ETH rose by about 30% in the following weeks. By January 12, the cryptocurrency had reached $2,700, a key level in ETH’s rally to the March high of $4,093.

If Ethereum follows the same pattern, the cryptocurrency could jump into the $4,900-$5,000 price range next month, potentially turning the next major resistance level into support over the next two weeks.

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

After breaching the $4,000 level earlier this month, the second-largest cryptocurrency has struggled to convert that level into support. The most recent breakout attempt occurred earlier this week when Bitcoin (BTC) exceeded its previous ATH.

While BTC traded above the $107,000 range, Ethereum rose to $4,100 but quickly recovered to $3,900 before correcting to $3,800. Despite the pullback, ETH continues to see gains on a weekly and monthly basis, registering gains of 2.3% and 22.6%, respectively.

Will ETH break above $4,000 this month?

Altcoin Sherpa highlighted that ETH is “about where BTC was at around 70,000,” adding that it “hasn’t materially breached that level in years.” Over the past three years, ETH has been rejected from the $4,000 level several times, but in 2021 it has reached an all-time high (ATH).

If this were to mirror Bitcoin’s performance, the cryptocurrency could surge to $4,800 ATH before reaching its first price discovery target of around $5,000. The analyst also noted that December and January are the “best time” for altcoin market performance.

Similarly, Benjamin Cowen before him highlighted that the ETH vs. BTC pair “continues to follow a familiar pattern” where Ethereum historically finds “renewed strength” between December and January.

Nevertheless, Sherpa forecast that the ETH/BTC pair will likely experience one “final shock” and then go “up for a few weeks/months.” To achieve this, the token needs to surpass its recent high of 0.041.

Skew trader and analyst warned that breaking the resistance at $4,000 will require “even more buying pressure” because that price causes “some mass retailer to constantly replenish supply.” Finally, he stated that the key to continuing growth is to maintain the level of $3,800.

At the time of writing, ETH is trading at $3,874, down 2% on the daily time frame.

Featured image from Unsplash.com, chart from TradingView.com