The current lack of major cryptocurrency market movement would not seem to have deterred analysts from making spectacular price forecasts. Most recently, Fundstrat’s Head of Research, Tom Lee, has made the rounds with a fresh bullish prediction for Ethereum.
Specifically, Bloomberg reports that Lee supposedly believes that Ethereum is about to see a ”trend reversal”, and will subsequently ”rally strongly”. The perhaps most notable aspect of Lee’s prediction, however, is the sheer magnitude with which he expects Ethereum to increase.
Lee has given a guidance for Ethereum to reach a mind-boggling price of $1,900 per token at the end of next year. At the time of writing, Ethereum has seen slight gains during the past few weeks and is now trading around $226.
Furthermore, Lee argues that an ”overly negative” sentiment on the Ethereum market is one of the key reasons as to why the cryptocurrency will be able to increase this massively in just a little over a year.
Lee released a note to Fundstrat Global Advisors’ clients, stating that this current market sentiment will act as a strong foundation for the substantial Ethereum market rebound he envisions.
Moreover, Lee has also used the historical performance of Ethereum to reach this conclusion, noting that when the cryptocurrency ”underperformed peers by two standard deviations”, it was about to see a subsequent price reversal.
It should also be noted that if Ethereum does indeed reach a price of $1,900 by late 2019, this will constitute an all-time high for the cryptocurrency. Currently, Ethereum’s all-time high is $1,349, around which it traded on January of this year.
In addition to this, if Ethereum commands a market price of $1,900, this would constitute an increase of 840% compared to the current price.
Nevertheless, this is not the first time that Lee has made his bullish position on cryptocurrencies known. Relatively recently, he predicted that Bitcoin could surge to $20,000 before the end of 2018.
However, the prediction of Bitcoin trading around $20,000 this year is actually a revision from Lee’s previous statement, where he envisaged Bitcoin trading at levels around $25,000 this year.
Lee retracted that position, however, acknowledging that this particular prediction appeared to be inaccurate.
It remains to be seen whether Lee’s Ethereum prediction will be accurate or not, but he is correct in noting that Ethereum has decreased substantially this year. Whether or not the currency is due for a trend reversal, however, is currently unclear.
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Rasmus Pihl is a writer for Toshi Times by day and an avid follower of the cryptocurrency industry by night. Rasmus holds a Bachelor’s Degree in Marketing from the Gothenburg School of Business, Economics, and Law and runs a Swedish marketing consulting firm. Moreover, when he isn’t writing for Toshi Times, traveling, working or changing the world in some other capacity, Rasmus is more than likely caught up in postgraduate studies.