Simply put
- Ethereum took a hit on Tuesday, dropping below $4,350.
- Thomas Lee, a managing partner at FundStrat, predicts ETH won’t dip below $4,000.
- He also believes ETH could climb past $5,000 soon.
Tom Lee from Fundstrat remarked that Ethereum may have found a temporary low on Tuesday and could soon rally above $5,000. His insights stem from a communication from Fundstrat’s global head of technology strategy.
Lee mentioned that Ethereum is unlikely to drop below $4,000 in the near future.
In the message he received, Newtown suggested an estimate of around $4,300, but the timing of this message was a bit vague.
At one point, Ethereum dipped to around $4,341 early Monday before bouncing back above $4,550. It’s seen a slight decline of about 1% in the last day and about 8% since its recent peak of $4,946 on Sunday.
According to various markets, around 80% of participants believe Ethereum will break the $5,000 mark this year.
Newton and Lee also speculated about Ethereum reaching $5,450, along with predictions showing a potential return to approximately $4,800 by mid-September.
However, David Morrison from Tradenation expressed some skepticism, noting that Ethereum might face short-term declines.
“I think as we approach year-end, there’s a potential for a strong upside, but the daily MACD indicates it’s still quite ‘overbought’. This could suggest a pullback before any significant rise, or a plateau similar to what’s happening in the US stock market,” he commented.
Morrison also mentioned that Bitcoin seems more appealing right now as its daily MACD is neutral.
Other analysts, including Simon Peters from Etro, shared concerns about possible further drops in Ethereum’s price in the short term.
Peters pointed out that September has historically been challenging for cryptocurrencies, suggesting that long-time holders might look to take profits.
He also warned that Ethereum’s path could hinge on decisions by the US Central Bank regarding interest rates during the upcoming meetings on September 16th and 17th.
If the Federal Reserve maintains interest rates, which the markets hint at, it could impact Ethereum negatively.
Looking ahead, Peters remains optimistic about Ethereum’s prospects for a strong performance by year-end, citing several encouraging factors.
“First, there’s a favorable regulatory environment for crypto in the US, which could lead to increased institutional interest in Ethereum as it plays a vital role in stablecoins and asset tokenization,” he said.
He added that interest in Ethereum is expected to stay robust due to the rise of spot ETFs and the growing number of public companies accumulating the token.
Peters noted that as global interest rates fall and liquidity increases, this could attract more retail investors into the crypto space.
While David Morrison acknowledges the upgrades and institutional interest supporting Ethereum, he remains cautious in expecting anything groundbreaking immediately.
“Given the current levels and various charts, it looks like Bitcoin has greater upside potential for the rest of the year,” he remarked. “Ethereum seems like it might need to clear some existing bubbles before launching into its next upward phase.”
Some analysts perceive Bitcoin as a risk factor for Ethereum, suggesting that Bitcoin’s recent downturn could negatively affect ETH.
Glenn Goodman, an analyst and author, noted that institutional interest in Ethereum ETFs might still support it, but ongoing falls in Bitcoin could weigh down on Ethereum.
“ETH might rise while BTC struggles, but if Bitcoin were to experience a serious decline, it’s unlikely ETH would escape a downward pull,” he observed.
