Ether may be entering a key accumulation zone, with analysts indicating the recent dip could soon reverse.
Michael van de Poppe, founder of MN Trading Capital, noted in a post on X Thursday that Ether’s recent decline was “a little deeper than expected.” He added, “Still a great area to accumulate positions on ETH.”
Traders are now eyeing $5,000 for Ether by year-end. The token has dropped 13.61% over the past week, hitting a low of $3,099 on Tuesday before bouncing back to $3,337 at the time of writing, according to CoinMarketCap.
Pseudonymous crypto trader Ash Crypto described ETH’s price action as “a massive bear trap” and expressed optimism that the token could reach $5,000 before the year concludes.
Historically, November has been Bitcoin’s strongest month since 2013, but Ether’s performance over the same period has been more modest, averaging a 5.76% return, according to CoinGlass.
Just a month ago, on October 7, Ether was trading near $4,740, and some market participants expect it could revisit that level soon. “You are about to witness one of the greatest reversals we have ever seen on ETH,” said crypto trader Gordon.
Other traders pointed to a potential “supply crunch” as a driver for upward movement, citing the shrinking amount of Ether available on exchanges as a key factor.
Ether sentiment turns bullish
Social media sentiment around Ether has turned more positive after the token’s price saw a modest rise on Thursday, even as the broader crypto market remained cautious amid ongoing downturns.
According to market intelligence platform Santiment, bullish chatter surged after Ether approached $3,500 on Thursday, which traders viewed as a sign of recovery. Meanwhile, the Crypto Fear & Greed Index, measuring overall market sentiment, recorded an “Extreme Fear” reading of 24 out of 100 on Friday.
