Financial research and analysis firm Fundstrat suggested that Ether is likely to “bottom” over the next two days and eventually rise to $5,500.
“I’m not too focused on the weakness in crypto over the last few days,” said Mark Newton, managing director at Fundstrat Global Advisors. “I expect ETH to probably bottom out over the next day or two and then rise again.”
His comments were shared by Bitmine chairman and Fundstrat advisor Tom Lee on Thursday. Newton also said there were “three small waves of backlash” that he expected to end by the end of the week.
Newton said that Ether (ETH) has already corrected from its September rally and predicted that it could fall to $4,200, which is “an optimal support area” before turning higher.
Ether rose to a weekly high of $4,750 on Tuesday, but has since fallen, briefly falling below $4,300 in late trading on Thursday. The asset has recovered to near $4,400 in Friday morning trading, but remains range-bound within the channel that formed when it broke above $4,000 for the first time this year in early August.
Ether has been range-bound since August. sauce: trading view
Dip is a strategic accumulation opportunity
Crypto analyst Benjamin Cowen said “volatile price action” will continue “until the bull market support band catches up,” which could take several more weeks.
Nassar Ashkar, chief strategy officer at CoinW exchange, told Cointelegraph: “It is increasingly likely that Ethereum will return to all-time high price levels ahead of potential macroeconomic changes due to the US economic downturn.”
“The expected rebound is driven by expectations for increased liquidity from a constructive technical setup and potential Federal Reserve policy easing.”
He added that the short-term decline is a “strategic accumulation opportunity” ahead of this expected rally.
Financial institutions remain bullish
According to Arkham Intelligence, Grayscale has been stacking and staking recently launched staking ETH in recent days, with hundreds of millions worth of money being deposited on Beacon Chain.
Grayscale has been staking thousands of ETH this week. Source: Arkham
“Ethereum is quietly becoming the foundation of global finance,” Sharplink co-chief executive officer Joseph Shalom said on Friday, adding that Ethereum is “the most significant structural opportunity of this decade (and) the next trust layer of the financial system.”
SharpLink Gaming is the second largest Ethereum treasury company in the world, holding 838,730 ETH worth approximately $3.67 billion.
Meanwhile, Tom Lee’s Bitmine continues to accumulate assets, with 23,823 ETH worth about $103 million added to the treasury late Thursday, Arkham said.
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