On Thursday (27 September 2018), Thomas Lee, a Managing Partner and the Head of Research at an independent research boutique Fundstrat Global Advisors, advised clients that Ether (ETH), the world’s second-most valuable cryptocurrency, was about to “rally strongly.”
It is undeniable that Ether, like most other cryptocurrencies, has had a terrible 2018 so far. According to CryptoCompare, since Ether reached its all-time-high price of $1,385 on 13 January 2018, it has plunged around 83.3%.
But now, Tom Lee, is offering HODLers a ray of hope. According to a report in CNBC, yesterday, Lee told Fundstrat’s clients in an advisory note that the “last four out of four times it [Ether] lagged its peers that badly, by two standard deviations”, it saw a “major trend reversal”, and that Funstrated believed that “Ethereum is about to stage a trend reversal and rally strongly.”
Lee, who was a managing director at JPMorgan Chase for almost 15 years before joining Fundstrat, believes that “sentiment is currently overly negative on ETH”, and that ETH underpforming its peers by two standard deviations was “a sign of capitulation”, which could be seen as a contrarian indicator.
He also said that Ether’s poor performance was caused by “a heavy supply being sold from EOS”, “questions about its blockchain technology’s road-map”, and “panic selling” by crypto projects that had raised ETH/BTC via ICOs.
Lee concluded that he expected the Ether price to reach $1,900 by the end of the year.
According to data from CryptoCompare, at press time, the Ether price is $231.22, up 8.43% in the past 24-hour period:
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