Fundstrat Global Advisors’ Managing Director and Head of Technical Strategy, Mark Newton, tipped Ether to bottom out within the next 12 hours before resuming its parabolic upsurge.
“ETH is a very good risk/reward here,” Newton noted, adding that he was “highly skeptical” that it breaks the trend or breaks last week’s low.
Newton expects resistance to be near $5,100, with the potential for Ether to hit $5,400–$5,450 on a bullish breakout. Maintaining support above $4,067 would keep the bullish stance intact and invalidate near-term bearish bias.
“Ideally, this should bottom out sometime in the next 12 hours near $4,300 and start to push back up to new highs and get above $5,100 and up to near $5,400 to $5,450,” the pundit stated.
As a result of Bitcoin’s decline in recent days, the total market cap has dipped below the important $4 trillion milestone as crypto markets erase all of last week’s gains. Nearly $200 billion has exited the market, bringing the total cap back to $3.87 trillion.
Ether is now 10.5% below its current all-time high of $4,946 set on August 24. Despite the crypto market dip, BitMine Immersion Technologies, the ETH treasury firm led by Fundstrat’s Tom Lee, purchased another $21 million worth of Ether on Tuesday.
This recent acquisition pushed its total holdings to about 1.71 million ETH (valued at around $7.6 billion at current Ether prices), and reinforces its position as the biggest corporate holder of the second-largest cryptocurrency.
According to crypto mogul Arthur Hayes, Ether still has plenty of room to run. As previously reported by ZyCrypto, the BitMEX co-founder recently upped his Ethereum price target again, suggesting that the coin could rip to as high as $20,000 by the end of this cycle.
