Ether (ETH) could soon finish its short-term correction and resume its upward trajectory toward $5,500, according to Fundstrat Global Advisors Managing Director Mark Newton.
Newton suggested that Ethereum’s recent weakness is temporary, noting that the asset is likely to form a near-term bottom within the next couple of days. “I don’t see much concern in the recent crypto decline,” he said, predicting ETH could soon rebound after a “minor three-wave pullback” expected to conclude over the weekend.
The insight was amplified by Tom Lee, chairman of Bitmine and an advisor at Fundstrat, who shared Newton’s analysis on Thursday.
Correction to Provide Support Zone Near $4,200
Following its September rally, Ether has already retraced part of its gains. Newton believes the token could briefly dip to around $4,200, which would act as a strong support level before prices turn higher.
After hitting a weekly peak near $4,750 on Tuesday, ETH slipped below $4,300 later in the week before recovering close to $4,400 early Friday. The token continues to trade within a consolidation range that began when it first broke above $4,000 in August.
Analysts View Dips as Buying Opportunities
Market analyst Benjamin Cowen said Ethereum may continue to trade sideways for a while as the “bull market support band” catches up with current prices — a process that might take several weeks.
Meanwhile, Nassar Achkar, Chief Strategy Officer at CoinW Exchange, noted that Ethereum’s outlook remains optimistic amid expectations of a softer U.S. economy and potential monetary easing by the Federal Reserve. “Each dip presents a strategic accumulation opportunity,” Achkar said, citing improving technical indicators and possible liquidity boosts.
Institutional Accumulation Strengthens Confidence
Institutional investors continue to increase exposure to Ethereum. Data from shows has been depositing and staking hundreds of millions of dollars worth of ETH on the since launching its staking fund.
