Ethereum Predicted to Rebound 129% to $4,000 by Analyst

Ethereum, the second-largest cryptocurrency by market capitalization, has experienced a significant decline in recent months, lagging behind Bitcoin and Solana in terms of price performance. Despite this underperformance, a prominent crypto analyst has expressed optimism about Ethereum's price trajectory, predicting a potential recovery to $4,000 before the end of the current bull cycle.

Crypto analyst Astronomer has shared his bullish outlook on Ethereum, suggesting that the cryptocurrency could rally to $4,000. In a detailed post, the analyst highlighted several technical indicators that support this prediction. Notably, Ethereum's price is currently within a support zone ranging from $1,700 to $1,900, a level that has historically served as a launchpad for price recoveries. Previous declines to this range have triggered strong price surges, indicating that Ethereum may be poised for a similar rebound.

Ask Aime: What factors can impact Ethereum's price trajectory?

While Ethereum has underperformed compared to Solana during the current bull market, it has still managed to double in value since its 2022 low, outperforming many other altcoins. Astronomer further emphasized his bullish stance by revealing that he had swapped Bitcoin for Ethereum, demonstrating his conviction that Ethereum will outperform Bitcoin by the end of the cycle. According to the analyst’s chart, Ethereum is currently trading within a long-term macro price range between $1,700 and $4,500. The cryptocurrency recently retested the bottom of this range, which historically led to a bounce back toward a price high above $4,000.

Astronomer also noted that Bitcoin has already set its weekly low, suggesting that Ethereum’s price movements could soon align with Bitcoin’s recovery. If Ethereum can reclaim the $2,100 level, the analyst predicts a rapid move toward $4,000 within a few months. With the next Federal Reserve monetary policy scheduled for mid-April, the market may see renewed bullish momentum that could benefit Ethereum’s price trajectory. Another major development supporting the analyst’s bullish projection for Ethereum is its performance in March 2024. At that time, the altcoin swept a previous price high but didn’t sustain a breakout, leading to a prolonged correction.

However, Astronomer suggested that this price trend indicates a potential revisit to $4,000, particularly after Ethereum hits a range low. The analyst notes that Ethereum is now at this critical low, which could signal that the bottom is in, paving the way for a potential move to new highs. Despite the bearish sentiment surrounding Ethereum due to its prolonged underperformance, historical data shows that when Ethereum hit similar low levels in late 2017 and 2021, the cryptocurrency experienced subsequent rallies to new all-time highs. The latest sentiment score shows Ethereum has hit rock bottom at 14, signaling extreme fear and uncertainty, which often precedes major price rebounds.