Despite the recent declines in market value of Ethereum, Fundstrat Global Advisors’ Head of Research, Tom Lee, assures clients Ether is poised to ‘rally strongly’. Lee is expecting a rise in value by almost 844 percent of its current price, by the end of this year.
Tom Lee on Ether Value Surge
Ethereum investors were left in awe as the crypto asset underwent a sharp decline in value since the start of 2018. For those who aren’t in the loop, Ether has sustained an immense loss of value in 2018, dropping by approximately 70% in terms of its market value. The dumbfounding decrease in price can be accredited to many factors, which include a lack of an imminent development roadmap, failure of ICOs, strengthening of fiat currencies, and panic sell-offs of the tokens by investors.
All these adversities led to the insane price drop of ETH. The cryptocurrency stooped to as low as $170 just a few weeks back, leading to a naturally unfavorable view on the state of the cryptocurrency. It is currently the second most popular altcoin in terms of market capitalization but is neck-to-neck with Ripple’s XRP, which is currently at the third position.
But according to Tom Lee, as relayed by CNBC, four out of four times when Ethereum was overtaken by other altcoins by two standard deviations, ETH overcame the adversity with a “major trend reversal.”
Ethereum currently trades for about $224.84, which is quite low when compared to the all-time high of $1,417.38 in January 2018. However, Lee suggests that by the end of this year, ETH would have hit a new all-time high of $1,900. He has also deduced that following the downfall of ETH by two standard deviations, it will be time for the coin to bounce back up and soar to a sky-high price level.
Lee, the aforementioned managing partner and head of research at Fundstrat wrote the following to clients in an official note:
“Ethereum is about to stage a trend reversal and rally strongly. Sentiment is currently overly negative.”
Although crypto investors and enthusiasts may be pessimistic about the future of Ethereum, crypto bull Tom Lee advises investors to bet their money on ETH as it is assured to have a desirable growth rate by the end of this year. Many have corroborated Lee’s predictions, as many optimists expect that the arrival of CBOE and LedgerX’s Ether investment vehicles will drive the adoption of this specific crypto asset.
On another note, Tom Lee also predicts Bitcoin to hit a minimum of $22,000 by the end of this year, in spite of a variety of setbacks.
Image Courtesy of Descryptive