According to analysts, Ethereum (ETH) is on the eve of a new price increase. Research agency Fundstrat expects that the currency could fall briefly to around $4,200, but could then move towards $5,500.
Three-wave correction for Ethereum
Mark Newton, managing director at Fundstrat, calls it a “three-wave correction” that would end this weekend. “I expect Ethereum to set a bottom in the coming days, after which the way up will be open again,” Newton said. His prediction was shared by Tom Lee, founder of consultancy BitMine and also affiliated with Fundstrat.
Ethereum, the second largest cryptocurrency after Bitcoin, peaked at $4,750 this week but then fell back to just below $4,300. Since August, the currency has been trading in a range between $4,000 and $4,700.
Strategic buying moments
Other market watchers see the current volatility as an opportunity to expand positions. Crypto analyst Benjamin Cowen expects that the “jerky price movements” could continue for several weeks until the so-called bull market support zone approaches.
According to Nassar Achkar, strategist at trading platform CoinW, the chance that Ethereum will return to its old record price is increasing. “The technical signals are constructive and a possible easing of US interest rate policy could provide additional liquidity,” he says. According to him, dips in the price would be “strategic buying moments”.
Institutions continue to purchase
Large institutional parties are also expanding their positions in Ethereum. Grayscale this week added hundreds of millions of dollars worth of Ether to the Beacon Chain, where the coin is deployed for staking.
In addition, Joseph Chalom, co-CEO of SharpLink, calls Ethereum “the most important structural opportunity of this decade” and a foundation for the future financial system. SharpLink manages more than 838,000 Ethereum, worth approximately $3.7 billion.
BitMine, Tom Lee’s company, bought almost 24,000 more Ethereum worth more than 100 million dollars on Thursday.
Source: https://newsbit.nl/ethereum-kan-na-daling-doorstijgen-naar-5-500-aldus-analisten/
