cointelegraph.com
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.
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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