Ether Targets $1,900 Price Before 2019, Says Tom Lee

If historical behaviour is anything to go by, then Ether which is the native token of the second largest cryptocurrency protocol, Ethereum is set for a significant bullish run.

Ether is down by over 80%, counting from its all-time high of January 2018, when the altcoin hit a unit value of $1,432.88. Even though the year 2018 has retained a blanket bearish momentum for the entire cryptocurrency market, Ether appears to be the highest hit among the top coins that are still surviving.

An Exhausted Trend

According to Tom Lee, head of research at Fundstrat Global Advisors, this loss by Ether, especially its most recent sharp decline has put it in a position that is well setup for a significant recovery.

The decline of Ether extends into the negative by two standard deviations in the last three months when compared to its counterpart cryptocurrencies. This extension puts it in a highly oversold region.

In a note to clients, Lee indicates that Ether has a habit of recovering its losses whenever it lags it peers by that much, judging from past records. This logic influences Lee’s prediction that Ether will rise up to $1,900 in price before 2018 runs out.

Why Ether Sold-Off Massively

Massive Ether sell-off by developing projects have been identified as one of the reasons for the massive loss of value by the cryptocurrency. As a platform for the development of dApps, Ethereum became the centre point for majority of the ICOs that took place during the 2017 boom. It’s adaptable Erc20 token served as a major fuel during this period.

Over 90 percent of the ICOs raised money using Ether. Therefore, it is only logical to expect that a huge chunk of the acquired tokens were being sold off and converted into fiat to pay for developmental products and services by these projects.

Speculative Sentiments

With the ICO boom era gradually fading away, one may not expect another season of unprecedented influx of buyers like before. However, speculative trading could have a significant effect on the markets.

A lot of bystanders who regret missing out of the previous rally are presently waiting on the sidelines for speculative opportunities. Moreso, this is crypto that is yet in its very early stages, the possibility of more innovative products that will attract more money unto the platform cannot be ruled out. Then there is the space for institutional investors who are waiting for a conducive regulatory atmosphere to engage the markets.

As the sideward trend lingers, sentiments will continue to flow and forecasts will not cease. However, a breakout seems inevitably imminent in the near future, the actual direction of which can only be speculated for the time being.

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