Bitcoin bull and former J.P. Morgan Chief Equity Strategist, Tom Lee has predicted that the world’s second-largest digital asset, Ether (ETH) is poised for a major rally in the immediate future.
As reported on CNBC, Lee identified an impending major trend reversal, having seen the altcoin underperform other cryptocurrencies by two standard deviations in all of the last four market segments.
How ETH Slumped
Ether which trades around $225 as at the time of writing reflects a slump of over 70% from an all time high price of around $1400 early this year. This qualifies it as the most depreciated cryptocurrency among the top digital assets in an overall bear market that has lasted several months.
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Various postulations have been pronounced as the reason for Ethereum’s significant slump in price. Some have blamed it on the massive sell-off by startups that accumulated ETH during the ICO boom era os 2017, these are now converting their crypto to pay for services during actual project development.
Lee, who is also the managing partner and head of research at Fundstrat Global Advisors said on Thursday in a note to clients that his company believes that Ethereum is about to stage a trend reversal and rally strongly.
Competition from other blockchain platforms like EOS has also been noted as a key reason to why Ethereum has experienced a negative market sentiment. EOS in its early stages developed on the Ethereum platform. However, it has since switched to its own native token, taking along its total structure and economy.
A General Market Sentiment
While Lee narrows down on Ethereum and its underlying token ETH, several other predictions have been reported on CCN by different stakeholders concerning the bearish trend across the entire crypto market. Most cryptocurrency proponents do not see the bearing trend extending much further than it present price region. As a matter of fact, a number of opinions suggest that the market is waiting for some imminent positive regulatory installations for another major upward breakout.
Despite the multiple non-approval of ETF applications by SEC, the conditions given do not in any way suggest total rejection. Instead, crypto enthusiasts are rather hopeful and believe that it is just a matter of time before a “big one” sails through.
An ETF or any other form of regulation may engineer a near-term bullish run in the crypto market by attracting institutional investors. However, a sector of the ecosystem believe that any form of regulation will not be a good thing for the technology in the long run.
No matter the outcome of the current events and how they may affect the crypto marketplace, it is clear that the entire ecosystem is still very much within a developmental phase whose outcome shall become obvious in the course of time.
Featured Image from Upfront Ventures/YouTube.