Tom Lee predicts that Ethereum will see a massive price rebound in the last few months of this year. The research director at Fundstrat Global Advisors suggests that by the end of 2018, the second-ranked cryptocurrency will reach $1,900. XRP temporarily replaced Ethereum in second place in the market capitalization ranking before regaining market share.
Ethereum price pull is coming soon
According to Bloomberg, the cryptocurrency bull market, Tom Lee expects a reversal of Ethereum in the fourth quarter of 2018. In a letter to Fundstrat’s clients on Thursday (September 27, 2018), Li believed that Ethereum’s recent efforts and coin losses exceeded the value of the third quarter of 50 2018.
Lee pointed out that Ether’s top ten peers have a performance gap of more than two standard deviations. According to Lee, this situation means that Ethereum will have a price rebound. In commenting on this matter, Li said:
Ethereum is about to reverse its trend and rebound strongly. Emotions are currently overly negative.
For Lee, his prediction relied on the historical performance of Ethereum, when the two standard deviations performed poorly. According to the head of Fundstrat, when this happens, ETH will always rebound and recover losses.
The cryptocurrency bull is also expected to reach $1,900 by the end of the year. At the time of writing, the price of ETH was $226, an increase of more than 6% in the past 24 hours.
Ethereum 2018 price struggle
In the face of the high price correlations in the cryptocurrency market, the recent negative trends in Ethereum are eclipsed. Bitcoin, altcoin and ICO tokens often show strong price deviations.
For ETH, the problem seems to stem from the failure of many ICO projects and the strength of the dollar. Most ICO projects are located on the Ethereum blockchain and have contributed significantly to the rapid rise of cryptocurrencies.
However, after the ICO frenzy in 2017, many tokens experienced a huge sell-off as the project failed to take off. This situation will substantially reduce the value of ETH. In early August, Ether fell below $300 to hit a new one-year low. Since then, cryptocurrencies have been on the downside.
If Lee’s predictions come true, then ETH will soar by more than 700%. This also means that Ethereum will create a new historical high (ATH). ATH before ETH is priced at $1,349
Source: (28 Sep 2018)