Ethereum (ETH) has been getting slaughtered throughout 2018 — to the point where it is struggling to maintain it’s title as the second-ranked cryptocurrency by market capitalization. Can it stage a comeback?
Wall Street’s crypto permabull Tom Lee thinks so.
The Big Picture
While it still might be too early to call a bottom for Ethereum, a macro view of the cryptocurrency easily illustrates how the price of ether is wallow near new lows over the past 365 days. In fact, ether is currently trading at prices below levels from which it launched itself into a parabolic bubble.
Lee and company base their prediction on the fact that Ethereum has been underperforming when compared to its competitors in the cryptocurrency space. According to Lee, ether historically reverses its trend when it lags behind this much.
That said, one cannot deny that ether is very firmly in a downtrend. It may be wise to wait for confirmation of a trend reversal before trying to catch a falling knife.
Haters Gonna Hate
Lee also stated his belief that “sentiment is currently overly negative on ETH.”
You don’t say?
Many cryptocurrency analysts have questioned ether’s long-term value in the face of an all-but-popped ICO (initial coin offering) bubble and inability to effectively scale.
TechCrunch‘s Jeremy Rubin recently suggested that ether itself is worthless, and an increasing number of retail investors have learned how to short Ethereum on platforms like BitMEX.
So while the technical picture might look enticing, conservative investors may be better served to take a wait-and-see approach.
What do you think about the price of Ethereum (ETH)? Is the second-ranked cryptocurrency about to stage a rally? Let us know your thoughts in the comments below!
Images courtesy of CoinMarketCap, TradingView.