Experts at Fundstrat Global Advisors are convinced that the price of Ethereum has already reached its minimum values following recent large-scale liquidations in the cryptocurrency market. The company’s partner, Tom Lee, stated that the digital asset ETH has likely already formed a “bottom” and has the potential for a rapid recovery.
This is reported by Business • Media
Optimistic forecast and actions of institutional investors
Fundstrat’s Director of Technical Strategy, Mark Newton, shared an optimistic forecast for Ethereum, expecting that its price could reach a new high soon. According to Newton, the price of ETH could potentially rise to $5450 in the coming days.
“Ethereum is a very attractive option in terms of risk-reward ratio. […] Ideally, if the bottom forms within the next 12 hours around $4300 and the market starts to rise to new highs, above $5100 — to $5400-5450.”
At the same time, according to Fundstrat, BitMine, a company founded by Tom Lee, took advantage of the market downturn to increase its reserves. BitMine recently acquired 4871 ETH for over $21 million, raising its total asset volume to 1.72 million ETH, valued at approximately $7.5 billion. Thus, BitMine currently holds 40% of all corporate reserves of Ethereum (out of a total of 4.3 million ETH).
Trends in the Ethereum market and actions of other players
Amid the decline in Bitcoin’s price to a seven-week low, Ethereum also dropped by more than 7%, reaching $4311 on the Binance exchange. However, at the time of preparing this material, the asset began to recover and rose above $4410, according to TradingView data.
Despite the recent correction, Ethereum remains 11% below its all-time high of $4956. Over the past week, BitMine has increased its cryptocurrency and cash assets by $2.2 billion — to $8.8 billion, and the net asset value per share rose from $22.84 at the end of July to $39.84. Additionally, SharpLink Gaming, a company co-founded by Ethereum’s Joseph Lubin, recently acquired 143,593 ETH for $667 million.
CryptoQuant analysts have recorded an increase in open interest for Ethereum futures contracts, surpassing the corresponding figure for Bitcoin. Meanwhile, BitMEX co-founder Arthur Hayes suggested that the price of Ethereum could reach $20,000 in the current cycle.