Financial research and analysis firm Fundstrat has tipped Ether to likely “bottom out” over the next two days before heading back higher, with an eventual rally to $5,500.
“I do not make much of crypto weakness in recent days, and expect ETH likely bottoms out over the next 1-2 days before heading back higher,” said Fundstrat Global Advisors Managing Director Mark Newton.
His commentary was shared by Bitmine chairman and Fundstrat adviser Tom Lee on Thursday. Newton also noted that there has been a “minor three-wave pullback,” which he said was expected to end over the weekend.
Newton said that Ether (ETH) has already corrected from its September rally and predicted that it could fall to $4,200, “which would provide an optimal area of support” before it turns back higher.
Ether rallied to a weekly high of $4,750 on Tuesday but has since weakened, falling back below $4,300 briefly in late trading on Thursday. The asset recovered to come close to $4,400 during early trading on Friday morning, but remains rangebound in a channel that formed when it first broke above $4,000 this year in early August.
Ether has remained rangebound since August. Source: Tradingview
Dips are strategic accumulation opportunities
Crypto analyst Benjamin Cowen stated that the “choppy price action” would persist until the “bull market support band catches up,” which could take several more weeks.
“Ethereum’s potential to reclaim all-time high price levels is increasing ahead of potential macroeconomic shifts amid a weakening US economy,” Nassar Achkar, chief strategy officer at the CoinW exchange, told Cointelegraph.
“The anticipated bounce is driven by a constructive technical setup and expectations of a liquidity boost from potential Federal Reserve policy easing.”
He added that any near-term dips were “strategic accumulation opportunities” ahead of this projected rally.
Institutions remain bullish
Grayscale has been stacking and staking ETH for its recently launched staking ETH over the past few days, with hundreds of millions worth deposited on the Beacon Chain, according to Arkham Intelligence.
Grayscale has been staking thousands of ETH this week. Source: Arkham
“Ethereum is quietly becoming the foundation of global finance,” said SharpLink co-CEO Joseph Chalom on Friday, adding that Ethereum is the “most important structural opportunity of this decade [and] the trust layer for the next financial system.”
SharpLink Gaming is the world’s second-largest Ethereum treasury company, holding 838,730 ETH worth around $3.67 billion.
Meanwhile, Tom Lee’s Bitmine continues to accumulate the asset, with an additional 23,823 ETH, worth around $103 million, added to its treasury late on Thursday, according to Arkham.
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