Ethereum (ETH) could soon rebound to new all-time highs above $5,000, according to Fundstrat’s senior technical strategist Mark Newton. Despite the recent crypto market crash that pushed ETH below $4,000, Newton believes the pullback is temporary and expects a strong rally toward $5,500 in the coming days.
In an X post, Fundstrat co-founder Tom Lee shared Newton’s analysis, highlighting that Ethereum is likely to bottom out within one to two days before resuming its upward momentum. Newton noted that the current correction is a minor three-wave pullback following a significant technical rally between September 25 and October 7. Based on his projection, the retracement phase is nearly over, with a bullish reversal expected by October 11.
The recent market turmoil, triggered by U.S. President Donald Trump’s announcement of a 100% tariff on China, led to panic selling across global markets. Ethereum plunged as low as $3,400, breaking below the $4,200-$4,220 support zone Newton had previously identified as a key level for a potential rebound. Despite this, Fundstrat analysts remain confident that ETH’s long-term structure remains bullish.
Tom Lee, who also serves as Chairman of BitMine — an Ethereum treasury firm — remarked during a CNBC interview that the market pullback was overdue. He pointed out that markets have surged 36% since the April lows, and crypto assets like Ethereum have more than doubled in value over the same period. Despite BitMine currently sitting on an unrealized loss of around $1.9 billion from its ETH holdings, the company continues to increase its position.
Onchain analytics firm Onchain Lens revealed that BitMine recently withdrew 78,824 ETH (worth over $302 million) from Kraken. As the largest public Ethereum holder, controlling more than 2% of the total ETH supply, BitMine’s aggressive accumulation signals strong institutional confidence in Ethereum’s long-term potential.
