Ethereum Price Analysis: ETH/USD Testing Key Support Despite ‘Expert’ Tom Lee’s Calls For Upside
- ETH/USD price action remains very much choppy, moving within an ascending channel pattern formation.
- Last week, Co-founder of Fundstrat Global Thomas (Tom) Lee stated Ether (ETH) is poised for a major rally in the immediate future.
High Market Volatility
The Ethereum price continues to trade within a choppy formation. It has failed to commit to a sustained trend since the heavy bear market seen at the early to mid-part of September. From the 5th September price of $285, it dropped over 40% in value, to the low, $167 on 12th September. In just a 7-day period the price managed to significantly crash lower.
These moves are still evidently seen not just in Ethereum, but across the market. There have been periods when the market saw excessive bull rallies, but these are quickly sold with some force by the bears. It continues to confirm how unsustainable trends currently are, just like with any market, however volatility across cryptocurrencies is certainly something else.
The crypto market is still very much a baby, within early stages of life. This is in comparison to other markets, such as stocks and bonds. There is still unpredictability about movements observed, in addition to lack of explanation. The erratic behavior may be observed for the foreseeable future, as the market continues to age. Specific calls of price targets in uncharted territory for cryptocurrencies are purely speculative and a wild guess.
Tom Lee Calls
Last week, the head of research at Fundstrat, Tom Lee, stated that Ethereum (ETH) is about to see a “trend reversal and rally strongly” up to $1,900 per token by the end of 2018. Further adding he “believes sentiment is currently overly negative on ETH.” Throwing in a caveat or an escape to his above call, he said threats to Ethereum include a “challenging technical picture”.
His quite absurd call is for a gain of around 750% in just over a year, plucking numbers out of the sky. This is unknown territory, given that Ethereum hasn’t even been above $1,500 yet. It peaked into the $1,400 region, on 13th January, before entering a deadly bear market. Lee appearing confident in his calls, which were put in a note and sent to Fundstrat’s clients.
This is the same gentleman who has been calling Bitcoin to be at $25,000 by the end of 2018. When most questioned recently, he reaffirmed his ludicrous price target for the largest cryptocurrency. Tom’s price call would need to see Bitcoin rallying around 200% within the next two months. A move towards freak territory, that was short of being seen during the large bull run, which peaked in December 2017.
ETH/USD price action is moving within an ascending channel pattern, as seen on the 4-hour chart. The formation commenced on 25th September and has been pushing higher, in a choppy fashion. Immediate support is observed at $224, where the lower part of the channel is tracking. A breach could see a very fast move back below $200 mark. Resistance seen at the upper trend line, around $244. Further north within $250-$260 territory is where supply can be observed.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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