Simply put
- Ethereum experienced a drop early Tuesday, falling below $4,350.
- Thomas Lee, managing partner at FundStrat, believes ETH won’t dip below $4,000.
- Lee anticipates that ETH will exceed $5,000 soon.
Tom Lee from Fundstrat suggests that Ethereum will likely hit a temporary low on Tuesday if it starts climbing above $5,000 before gaining much more traction.
A note from the global head of Fundstrat’s technology strategy mentioned that Ethereum shouldn’t fall under $4,000 in the short term.
There was a suggestion that the bottom might be around $4,300, but the timing of this message wasn’t clear.
On Monday, Ethereum was down to about $4,341, later bouncing back above $4,550. It has lost nearly 1% in the past 24 hours and is down about 8% from its peak of $4,946 reached on Sunday.
According to data from Linea markets, around 80% of participants believe Ethereum will surpass $5,000 this year.
Lee and Newton have indicated a potential for ETH to reach $5,450, supported by charts suggesting it could return to roughly $4,800 by mid-September.
However, there are dissenting views. David Morrison, a market analyst at Tradenation, believes that a decline could occur in the short term.
“As we move towards the end of the year, there’s potential for more upside, but current trends show it could be ‘overbought’,” he commented. This analysis suggests a possible retreat before any significant upward movement.
He noted that Bitcoin currently seems more appealing, as its metrics have returned to neutral levels.
Other experts, including Simon Peters from Etoro, also think Ethereum could experience further drops soon.
Peters mentioned that historically, September has been a tough month for crypto prices, suggesting that long-term holders may consider taking profits.
He added that Ethereum’s path may hinge on the Federal Reserve’s upcoming decisions about interest rates, particularly at the meeting scheduled for September 16th and 17th.
If the Fed maintains interest rates, this might trigger downward pressure on prices in the near term.
In terms of mid-term potential, Peters remains optimistic about Ethereum’s prospects for a strong run later in the year, citing several encouraging factors.
He pointed out a beneficial regulatory environment for cryptocurrencies in the U.S., which he believes will encourage more institutions to build on Ethereum.
Peters is also hopeful that ongoing demand from spot ETFs and growing public companies accumulating tokens will keep Ethereum’s momentum alive.
Moreover, with falling global interest rates and increasing money supply, he sees potential for more retail investors turning to crypto.
While Morrison acknowledges the continual upgrades and interest from institutions as favorable for Ethereum, he cautions against overly ambitious expectations.
“At the moment, given the data, Bitcoin appears to have more upward potential,” he remarked, adding that Ethereum might need to address existing bubbles before it can find a new growth base.
Interestingly, some analysts propose that Bitcoin’s recent decline could negatively affect Ethereum.
Analyst Glenn Goodman expresses that while institutional interest in Ethereum ETFs might support it, Bitcoin’s further drops could weigh on ETH.
“ETH might rise when Bitcoin is struggling,” he noted. “But if Bitcoin plunges significantly, it’s unlikely that ETH will escape the downward pull.”
