Financial research and analysis firm Fundstrat said that Ether will likely head to the “bottom” over the next couple of days before heading back up, with an eventual rise to $5,500.
“I don't talk much about crypto weakness in recent days, and I expect ETH to bottom out over the next day or two before bouncing back,” said Mark Newton, managing director of Fundstrat Global Advisors.
His comment was shared by Bitmine CEO and Fundstrat advisor Tom Lee on Thursday. Newton also noted that there was a “minor three-wave pullback,” which he said was expected to end over the weekend.
Newton said that Ethereum (ETH) has already corrected from its September high and predicted it could fall to $4,200, “which would provide an ideal support area” before returning higher.
Ether rose to a weekly high of $4,750 on Tuesday, but has since retreated, falling back below $4,300 briefly in late trading on Thursday. The asset recovered to near $4,400 during early trading on Friday morning, but remained range bound in the channel that formed when it first crossed $4,000 this year in early August.
Dips are strategic accumulation opportunities
Cryptocurrency analyst Benjamin Cowen stated that the “volatile price action” will continue until the bull market “catches up to a support range,” which could take several more weeks.
“Ethereum’s ability to recover to all-time high price levels is increasing ahead of potential macroeconomic shifts amid a weak US economy,” Nassar Al-Ashkar, chief strategy officer at CoinW exchange, told Cointelegraph.
“The expected rebound is driven by constructive technical preparation and expectations of enhanced liquidity from potential Fed policy easing.”
He added that any near-term declines were “strategic accumulation opportunities” ahead of this expected rise.
Institutions are still bullish
Grayscale has been staking and staking ETH for its newly launched ETH over the past few days, depositing hundreds of millions of value into the Beacon Chain, according to Arkham Intelligence.
“Ethereum has quietly become the foundation of global finance,” SharpLink co-CEO Joseph Chalom said on Friday, adding that Ethereum is “the most important structural opportunity of this decade.” [and] The trust layer of the next financial system.
SharpLink Gaming is the second largest Ethereum treasury in the world, holding 838,730 ETH worth approximately $3.67 billion.
Meanwhile, Tom Lee's Bitmine continues to accumulate assets, with an additional 23,823 ETH, worth about $103 million, added to its treasury late Thursday, according to Arkham.
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