Ethereum is set for a V-shaped recovery, says Fundstrat’s Lee
Fundstrat's head of research, Tom Lee, said he expects Ether to recover quickly following the recent decline, as the asset has experienced eight recoveries since 2018.
“A lot of people are upset, but remember that since 2018, Ethereum has fallen more than 50% eight times,” Lee said at a conference in Hong Kong on Wednesday.
Last year, Ethereum fell by 64% from January to March, he added.
But eight times out of eight, Ethereum has a V-shaped bottom. So he recovered 100% of the time as fast as he fell.
He argued that nothing has changed and that Ether (ETH) will see another V-shaped bottom.
ETH is close to the bottom, says Lee
BitMine market analyst Tom DeMarc suggested that the $1,890 price level might be a low, but said he would touch it “down” twice. Lee explained that this would be a “complete bottom”:
“We think Ethereum is really close to the bottom, and I think it's like fall 2018, fall 2022 and April 2025. You really don't need to worry about the bottom. If you see a decline early, you should think about the opportunities here instead of selling.”
RELATED: Analysts debate whether ether has flattened or should fall further.
Ether's price on Coinbase rose to $1,760 on Feb. 6, just below the 2025 low of $1,400, according to TradingView.
The asset failed to hold above $2,000, falling to $1,970 at the time of writing following a 37% crash over the past 30 days.
Ether staking entry maintains an all-time high.
Although the asset has performed poorly this year, data shows that there is still high demand for ether stocks.
The current wait for Ether to be suppressed is a 71-day high, with a record 4 million ETH in the validator entry queue, according to ValidatorQueue. The percentage of supply held is 30.3 percent or 36.7 million ETH. It is at the highest level.
The obvious effect of this is “a big supply constraint,” said analyst “Milky Way” on Wednesday.
“A third of all ETH is now liquid, earning a modest 2.83% APR,” he added. “This is not a passion product by crypto standards, but people will line up anyway.”
“When people lock in $74 billion during a rate hike, they're not speculating. They're doing it.”
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