SharpLink Predicts a Swift 90% Rally in Ethereum Price to New ATH

SharpLink Gaming, the 2nd largest Ethereum treasury company, has made a bold prediction of a quick rebound in Ethereum price. Chairman Joseph Lubin and CIO Matt Sheffield highlighted historical data suggesting a strong rebound in prices after tax loss harvesting and the government shutdown.

Will Ethereum Price See a Quick Rebound as SharpLink Predicts?

Ethereum price action remains tepid after the October 10 crypto market crash, which was the largest near-instantaneous loss of wealth and deleveraging the industry has ever seen. The liquidation size was even larger than FTX, requiring entities that had off-exchange leverage to pay down their credit by selling quality assets such as Bitcoin and Ethereum.

It’s important to consult history to put into perspective how major the liquidations of Black Friday (Oct 10) were, and what we could expect a recovery to look like,” said Matt Sheffield, CIO at SharpLink Gaming. He added that investors, including institutional investors, are witnessing a tightened credit scenario similar to the aftermath of FTX crisis.

He claimed that institutional investors get more defensive lending while they assess borrower credit worthiness, adjust risk models to be more conservative, and sell margin assets BTC and ETH for that credit.

SharpLink CIO claimed firms are harvesting tax losses as the crypto market crash happened near the year-end. This results in an increase in selling pressure on Ethereum price and other crypto assets.

He expects a subsequent relief rally to be swift and strong when the selling pressure subsides, which took almost a month and a half following the FTX crisis. “History is going to rhyme at best. The longest government shutdown in US history coinciding with this liquidation event throws a bit of a wrench in things in terms of timing the resolution,” he added.

Joseph Lubin Supports SharpLink CIO’s Ethereum Price Prediction

Notably, the crypto market is more resilient than in 2022. As per SharpLink CIO, “Whether this subsides tomorrow, or in a matter of weeks, nobody can say. But all government shutdowns do, all access to credit resets, and then when the market is offsides, things can reverse swiftly.”

SharpLink chairman Joseph Lubin backs Matt Sheffield’s prediction. He claims Ethereum price has the potential to make one of the strongest rebounds. A 90% rebound based on historical data will make Ethereum price hit a new all-time high (ATH).

Whale Accumulating ETH Heavily

Whale activity has surged notably over the past week, coinciding with Ethereum’s dip toward key technical supports. Lookonchain reported that whales purchased more than 394,68 ETH worth $1.37 billion over the last 3 days, signaling renewed accumulation on dips.

This indicates long-term holders and ETH whales anticipating a recovery in Ethereum price. Analysts recommended a potential entry before the next rally. Meanwhile, institutional involvement continues to strengthen confidence as Tom Lee’s Bitmine Immersion continues to expand its Ethereum holdings.

Ethereum price is trading near $3,400, up 3% in the past 24 hours. The 24-hour low and high are $3,275 and $3,479, respectively. However, trading volume has decreased by 50% in the last 24 hours, signaling cautious sentiment among traders.