Tom Lee From Fundstrat Global Advisors Believes Ethereum Is Set To Explode Based On Technicals

Wall Street analyst and cryptocurrency specialist Tom Lee believes that Ethereum (ETH) will embark on a rally before the end of the year, despite the price of the second largest cryptocurrency dropping by 70 percent since the start of the year.

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Wall Street analyst and cryptocurrency specialist Tom Lee believes that Ethereum (ETH) will embark on a rally before the end of the year, despite the price of the second largest cryptocurrency dropping by 70 percent since the start of the year.

Tom Lee From Fundstrat Global Advisors Believes Ethereum Is Set To Explode Based On TechnicalsEthereum will rise despite low prices

During an interview with CNBC, the Tom Lee mentioned that it is not too late for Ethereum to turn things around and see massive gains before the end of the year.

Ethereum has lost nearly 80 percent of its value since the start of the year. Over the past three months, it is amongst the worst performing cryptocurrencies, shedding 50 percent of its value during that time.

Lee pointed out that on the four previous occasions that Ethereum lagged its peers, it led to major trend reversals and he envisioned that happening again. 

“We believe Ethereum is about to stage a trend reversal and rally strongly,”

He also stated that the current overly negative sentiment on the cryptocurrency is a sign that his prediction is about to come true.

According to the head of research at Fundstrat Global Advisors, Ether’s downtrend is affected by a major supply being sold from the EOS project, which was initially running on the Ethereum blockchain.

He further added that the project has a questionable roadmap and, alongside the panic selling by several ICOs, had an effect on the price of ETH.

Rough 2018 for Ether so far

Ether was the best performing cryptocurrency last year, even recording gains ahead of Bitcoin for parts of last year, however, negative sentiments have depressed the price of ether by 80% since last year’s peak.

Ethereum now has some serious competition from platforms like EOS, Tron, and Cardano,  as each looks to become the preferred destination for smart contract and dApp developers.

The drop in ICO investments over the past few months has also been a contributing factor to Ether’s long list of problems. The Ethereum network is the preferred platform for ICO issuers, with ETH token the most used during ICOs.

Over the past few months, ICO investments have slowed down as investors become more cautious about the projects they invest in, wary of fraud.

Lee believes that being unable to overcome these challenges is a real threat for Ethereum, with Fundstrat’s technical strategist Rob Sluymer stating that Ether is firmly in a pronounced downtrend at the moment.

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