Financial research and analysis firm Fundstrat expects Ether (ETH) to “bottom out” within the next couple of days before resuming its uptrend, potentially rallying toward $5,500.
“I don’t see much significance in the recent crypto weakness and expect ETH to likely find its bottom within the next one to two days before moving higher,” said Mark Newton, Managing Director at Fundstrat Global Advisors.
Newton’s remarks were shared by Bitmine chairman and Fundstrat adviser Tom Lee on Thursday. He noted that Ether is undergoing a “minor three-wave pullback,” which he expects to conclude over the weekend.
According to Newton, Ether has already corrected from its September rally and could dip to around $4,200, a level he described as an “optimal area of support” before the next upward move.
After reaching a weekly high of $4,750 on Tuesday, Ether weakened and briefly dipped below $4,300 in late trading on Thursday. It later recovered to around $4,400 in early Friday trading but remains rangebound within the channel established when it first broke above $4,000 in early August.
Dips present strategic accumulation opportunities
Crypto analyst Benjamin Cowen noted that the current “choppy price action” in Ether is likely to continue until the bull market support band catches up — a process that could take several more weeks.
Meanwhile, Nassar Achkar, Chief Strategy Officer at CoinW Exchange, said that Ethereum’s potential to reclaim its all-time highs is strengthening amid expectations of macroeconomic shifts driven by a weakening U.S. economy.
“The anticipated bounce is driven by a constructive technical setup and expectations of a liquidity boost from potential Federal Reserve policy easing.”
He added that any near-term dips should be seen as strategic accumulation opportunities ahead of the anticipated rally.
Institutions remain bullish
Grayscale has continued stacking and staking ETH through its recently launched staking program, depositing hundreds of millions of dollars’ worth of Ether on the Beacon Chain over the past few days, according to Arkham Intelligence.
“Ethereum is quietly emerging as the foundation of global finance,” said Joseph Chalom, co-CEO of SharpLink, on Friday. He added that Ethereum represents the “most important structural opportunity of this decade” and serves as the trust layer for the next financial system.
SharpLink Gaming is the world’s second-largest Ethereum treasury holder, with 838,730 ETH valued at approximately $3.67 billion.
Meanwhile, Tom Lee’s Bitmine continues to accumulate Ether, adding 23,823 ETH — worth roughly $103 million — to its treasury late Thursday, according to Arkham Intelligence.
