Crypto permabull and Head of Research at Fundstrat Global Advisors, Tom Lee says the stage is set for a major reversal in the Ethereum market. He projects that Ethereum will hit USD 1,900 by the end of 2019, far above its current price of USD 220 as of this writing on 28 September 2018, and above the record high near USD 1,400 set in January 2018.

Lee points out that Ethereum has done much worse than other major cryptos, declining 84% since it hit its peak in January 2018. Apparently, this decline is two standard deviations lower than other major cryptos, and the last 4 times this happened, Ethereum’s market reversed and a major rally started. Lee says, “We believe Ethereum is about to stage a trend reversal and rally strongly”.

Lee brings up the point that EOS, the #5 crypto with a market cap of USD 5.3 billion, used to be an Ethereum token and then moved from Ethereum to its own native blockchain. EOS users were buying up large amounts of Ethereum to transact EOS back when it was an Ethereum token, but now, that demand has completely vanished. Additionally, ICO regulation has been drastically increasing, especially in the United States where ICOs are illegal unless approved by the Securities and Exchange Commission. Lee thinks some ICOs panic-sold and collapsed, reducing demand for Ethereum.

Furthermore, dApp usage has drastically declined during 2018, which lowers the number of users on the Ethereum platform and decreases demand for Ethereum to pay transaction fees associated with dApps.

The combination of these factors has caused a negative sentiment in the Ethereum market, and Lee thinks it’s overly negative. These negative factors have already been priced into Ethereum’s market. Ethereum is still the #1 blockchain platform for dApp development and token creation, setting the stage for a rally based on fundamentals.

In general, Lee expects the rest of the crypto market to rally long-term. In May 2018 Lee said Bitcoin would hit USD 36,000 by the end of 2019.

Follow BitcoinNews.com on Twitter: @BitcoinNewsCom

Telegram Alerts from BitcoinNews.com: https://t.me/bconews

Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.

Image Courtesy: Pixabay
Comments are closed.

Check Also

$1.7 Billion Grams ICO, History’s 2nd Biggest, Has Been Killed by Securities Regulations

The Grams ICO is perhaps the biggest ICO failure in history In 2018, Telegram raised USD 1…