Financial research and analysis firm Fundstrat predicts that Ether is likely to “bottom out” in the next couple of days before climbing back, potentially reaching a height of $5,500.
“I don’t view recent crypto weakness as significant, and I expect ETH to likely bottom out within the next 1-2 days before showing upward movement,” stated Mark Newton, Managing Director at Fundstrat Global Advisors.
This commentary was shared by Tom Lee, chairman of Bitmine and adviser to Fundstrat, on Thursday. Newton also pointed out a “minor three-wave pullback,” which he believes will conclude over the weekend.
He indicated that Ether (ETH) has already retraced its gains from September and anticipates it could drop to $4,200, which he views as a prime support level before it moves up again.
Ether soared to a weekly peak of $4,750 on Tuesday but has since weakened, dipping back below $4,300 late Thursday. It quickly rebounded to nearly $4,400 in early Friday trading, yet remains stuck within a channel established when it first surpassed $4,000 in early August.
Dips are strategic accumulation opportunities
Crypto analyst Benjamin Cowen noted that the “choppy price action” will likely continue until the “bull market support band aligns,” which could take several more weeks.
“Ethereum’s chances of reclaiming all-time high price levels are improving in light of potential macroeconomic changes given a weakening US economy,” remarked Nassar Achkar, Chief Strategy Officer at CoinW exchange, to Cointelegraph.
“The expected bounce is fueled by a favorable technical setup and hopes for increased liquidity from potential Federal Reserve policy easing.”
He further stated that any near-term dips represent “strategic accumulation opportunities” ahead of the anticipated rally.
Institutions remain bullish
Grayscale has been acquiring and staking ETH for its newly launched staking program in recent days, depositing hundreds of millions on the Beacon Chain, according to Arkham Intelligence.
“Ethereum is gradually becoming the backbone of global finance,” asserted SharpLink co-CEO Joseph Chalom on Friday, expressing that Ethereum is the “most significant structural opportunity of this decade [and] the trust layer for the next financial system.”
SharpLink Gaming holds the world’s second-largest Ethereum treasury, with 838,730 ETH valued around $3.67 billion.
Additionally, Tom Lee’s Bitmine has continued to accumulate the asset, with a further 23,823 ETH, worth about $103 million, added to its treasury late Thursday, according to Arkham.
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