More often, crypto enthusiasts really for the largest digital asset, Bitcoin and forgo other altcoins. However, this time around bitcoin bull Tom Lee, spoke in favor of Ether, who have had a rough year. Lee suggested that ether will soon make a comeback and with a bang.
After a breakout 2017, Ether, the world’s second-largest digital asset couldn’t find its footing and has slipped down more than 70 percent since January. According to the data from CoinDesk, the token has largely underperformed and dropped 50 percent in just the past three months. In September, Ripple (XRP) managed to overtake Ethereum in terms of market capitalization, twice.
Tom Lee, the managing partner and head of research at Fundstrat Global Advisors, expressed his support for the asset in a note to clients on Thursday. He notes that the last four out of four times ether lagged its peers by two standard deviations, it observed a “major trend reversal.” He states:
“We believe Ethereum is about to stage a trend reversal and rally strongly.”
Last year Ether rallied up to outperform its predecessor bitcoin, though 2018 observed a totally different story. Attributing to this reversal is its blockchain competitors like EOS, that are gaining preference from the developers and the delay in mainstream adoption, which is wearing thin the investor patience
However Lee, “believes sentiment is currently overly negative on ETH.” He credits Ether’s underperformance in relation to its peers as “a sign of capitulation.” Furthermore, Lee notes that ether was “dogged” due to heavy supply being sold from EOS. The latter built a platform on ethereum and then switched it to its own new token. The former J.P. Morgan Chief Equity Strategist includes the “panic selling” by ICO teams and the concerns for ethereum’s blockchain technology’s road-map.
The price point that Lee claims for Ethereum to reach by 2019 end, $1,900 is at least 40 percent higher than Ethereum’s all-time high of $1,349 that was recorded on January 13, 2018. Lee conclusion also points that altcoin’s price will surge by 726 percent by the end of the year as at the time of writing the price of Ethereum is $230.
Lee’s support for Ether doesn’t overshadow his bullishness related to Bitcoin, just a few weeks ago he claimed that the token will rise to $25,000 mark by the year-end.
The second largest cryptocurrency by market capitalization at the time of writing was launched on July 30, 2015. While Bitcoin gives access to a global financial network, ether allows access to a computer network. Ether is often referred to gasoline for a car (ethereum) as developers can use ether tokens as fuel for certain functions on that blockchain. Ethereum provides an open-sourced blockchain that features smart contracts and a basis for emerging blockchain-powered applications in a number of industries.
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