Astronomer, a crypto analyst, predicts Ethereum may recover to $4,000, despite recent declines. Currently positioned in a $1,700-$1,900 support zone, historical trends suggest potential price surges from this range. Negative market sentiment exists around ETH, yet historical data indicates recoveries often follow similar sentiments. Upcoming Federal Reserve actions could further influence Ethereum’s market trajectory.
The Ethereum price has seen a notable decline recently, lagging behind Bitcoin (BTC) and Solana (SOL). Despite this trend, crypto analyst Astronomer remains bullish, forecasting a potential recovery to $4,000 by the end of the bull cycle, drawing attention to inviting technical signals.
According to Astronomer, Ethereum is currently situated within a critical support zone between $1,700 and $1,900. Historically, this zone has proven to be a launch pad for price recoveries, as earlier retracements to these levels have led to substantial surges. Furthermore, while Ethereum has underperformed compared to Solana, its price has doubled from its 2022 low, outperforming most alternative cryptocurrencies.
The analyst elaborates that Ethereum’s trading activity reveals a long-term macro range between $1,700 and $4,500. The cryptocurrency has recently hit the bottom of this range, which historically signals a bounce back, often propelling prices above $4,000. Additionally, with Bitcoin recently setting its weekly low, Ethereum’s trajectory may soon align with Bitcoin’s recovery as it aims to reclaim the $2,100 level, which could catalyse a swift climb to $4,000.
The upcoming Federal Reserve monetary policy meeting in mid-April may enhance market momentum, positively impacting Ethereum’s trajectory. Moreover, Astronomer points out that Ethereum experienced a significant price movement in March 2024, where it tested previous highs but failed to maintain a breakout, causing a longer correction. Despite this, the current low signals that Ethereum might be poised for new highs.
Despite the bullish outlook, Ethereum faces considerable bearish sentiment stemming from its consistent underperformance. Astronomer notes that negative sentiment towards Ethereum is currently stronger than that for Bitcoin, with criticisms about its use case and speculation about the Ethereum Foundation’s potential asset liquidation. Nevertheless, historical patterns suggest that when Ethereum reached similar lows in the past, it ultimately surged to new all-time highs. Presently, sentiment indicators show Ethereum at a low score of 14, reflecting extreme fear, a condition often preceding significant price recoveries.
