According to Wall Street firm Fundstrat Co-Founder Tom Lee, after performing badly for many months, Ethereum is likely to come back strong. In a note Lee wrote to clients on Thursday, Ethereum is preparing to bounce back in the coming months. According to him, the cryptocurrency can go as high as $1900 by the end of 2019.
After touching its ATH at $1417 in January 2018, Ethereum has lost almost half of its value in the past three months alone and has been underperforming for quite long now. But according to the note written by Lee, the cryptocurrency is underperforming large-cap coins by two standard deviations, which can be signal for an upcoming market rebound.
Basing his prediction on the historical performance of Ethereum, Lee said that the times when Ethereum “underperformed peers by two standard deviations,” the price trend saw a subsequent reverse.
“We believe Ethereum is about to stage a trend reversal and rally strongly,” Lee wrote on Thursday. Lee says “sentiment is currently overly negative on ETH.” According to Lee, due to underperforming for so long, a major trend reversal is imminent for Ethereum. Investors and traders have been overselling the coin and soon investors will flock in due to the low price point.
Lee’s prediction of $1900 by 2019 – is 40% higher than the Ethereum’s ATH of $1400 in January this year. Lee has also been bullish for Bitcoin. Recently he predicted that BTC can end up trading between $20-25K by the end of the year.
Despite the bullish claims, Lee believes there’s a”challenging technical picture” and according to the firm’s technical strategist Rob Sluymer, ETH is “firmly in a pronounced downtrend.” With Ethereum technically available at dirt cheap prices, the investors will definitely be interested in the cryptocurrency if the Ethereum team comes up with solutions to its present problems including network congestion, scalability, delay and in projects and updates.