Ether may have entered a prime accumulation zone, with analysts suggesting the recent pullback could soon reverse.
MN Trading Capital founder Michael van de Poppe said in an X post on Thursday that the recent price decline in Ether (ETH) was a “little deeper than expected.”
“Still a great area to accumulate positions on ETH,” he added.
Ether traders eye $5,000 before year-end
Ether is down 13.61% over the past seven days, falling as low as $3,099 on Tuesday before recovering to $3,337 at the time of publication, according to CoinMarketCap.
Pseudonymous crypto trader Ash Crypto said ETH’s price “looks like a massive Bear trap” and was hopeful the token would reach $5,000 before the end of the year.
Ether is down 24.32% over the past seven days. Source: CoinMarketCap
November has historically been Bitcoin’s top-performing month since 2013, but Ether’s average return during the same period is comparatively weaker at 5.76%, according to CoinGlass.
It was only a month ago, on Oct. 7, that Ether was trading just shy of that level at around $4,740.
Some market participants anticipate the token will return to that price level soon. “You are about to witness one of the greatest reversals we have ever seen on ETH,” said crypto trader Gordon.
Other traders said that a “supply crunch” could potentially cause an upward price movement, pointing to the diminishing supply of Ether on crypto exchanges as a strong contributing factor.
Ether sentiment turns bullish
It comes as Ether traders on social media became more optimistic after the token’s price saw a slight bump on Thursday, despite the rest of the crypto market remaining fearful amid a wider downturn.
Related: DeFi players launch alliance to champion Ethereum to policymakers
The uptick in bullish comments on social media was sparked after Ether nearly reached $3,500 on Thursday, which traders interpreted as a positive sign that the token was back on track, market intelligence platform Santiment said in an X post.
The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an “Extreme Fear” score of 24 out of 100 on Friday.
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