Ether may have entered a prime accumulation zone, with analysts suggesting the recent pullback could soon reverse.
Michael van de Poppe, founder of MN Trading Capital, stated in an X post on Thursday that the recent price decline in Ether (ETH) was a "little deeper than expected." He added, "Still a great area to accumulate positions on ETH."
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.
Pseudonymous crypto trader Ash Crypto said ETH’s price "looks like a massive Bear trap" and expressed hope that the token would reach $5,000 before the end of the year.
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%.
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. Crypto trader Gordon said, "You are about to witness one of the greatest reversals we have ever seen on ETH."
Other traders indicated 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
Ether traders on social media have become more optimistic following a slight price bump on Thursday, despite the rest of the crypto market remaining fearful amid a wider downturn.
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, according to market intelligence platform Santiment.
The Crypto Fear & Greed Index, which measures overall crypto market sentiment, posted an "Extreme Fear" score of 24 out of 100 on Friday.