Ethereum prices have been in shambles since it made its all-time high of USD 1417.38 in January 2018. A lot of things aren’t in favor of the coin and hence it now sits in a USD 200- USD 250 range always threatening to breach the USD 200 support. While not much is positive for the Ehtereum right now, the crypto giant still finds support from some of the leading names in the industry, Thomas Lee being the latest as he believes the rally is about to start in Ethereum.
Lee’s call more technical than fundamental
Thomas Lee, head of research at Fundstrat Global Advisors, recently released a note to its clients where he stated Ethereum could begin a rally soon as it has been oversold by investors and traders. According to Lee, this sell-off has bought Ethereum at a very attractive price point and soon investors may start flocking around the coin. According to Lee, Ether has lost half of its value in the past three months and has underperformed large-cap coins by two standard deviations, which could signal that it’s time for a rebound. To quote him from his letter
“Ethereum is about to stage a trend reversal and rally strongly,” “Sentiment is currently overly negative.”
Lee also noted that Historically, when Ether has underperformed peers by two standard deviations, it has reversed those losses. He expects the token to reach $1,900 by the end of the year.
Lee has been fairly bullish about cryptocurrencies despite the huge sell-off the coins and tokens have seen since the start of 2018. Apart from Ethereum, Lee has a $25,000 price target on Bitcoin, which is currently worth about a quarter of that.
Will Ethereum rise again?- An answer that everyone is looking for
Ethereum is currently surrounded by all sought of problems- be it technical issues of network congestion, scalability, delay and in projects and updates, ICO’s sell of and rising competition. But if experts are to believed Ethereum roadmap and future projects still have enough potential that could take all of Ethereum’s current pain away and help it regain its lost glory in terms of price and credibility.
If various news sources, announcements and events are to be believed the Ethereum team seems to have shifted all its focus to the key releases that would move the needle toward scalability; namely, the Casper Proof-of-Stake release and Sharding release.
In June some of the news covered, understanding the gravity of the situation for Ethereum, Creator Vitalik Buterin indicated that the team might seek to alter the sequence in which Casper and sharding. Casper, Ethereum’s long-planned consensus algorithm proof-of-stake, promises to be more energy efficient and egalitarian than its current proof-of-work system, while sharding could hold the keys to scaling the system to a massive number of transactions. If this plan works the technologies would combine to create a version of the protocol that could be orders of magnitudes more efficient
In August, Jun Hasegawa, the founder, and CEO at OmiseGO, also tweeted saying that he foresees massive scaling and adoption of Ethereum by 2020, as he outlines the future of Ethereum and the roadmap of its growth over the next two years. Jun using his twitter handle gave out a probable roadmap showing where Ethereum is headed. He was really optimistic yet realistic as he had all praises for the worlds second largest cryptocurrency by market cap. According to him its year 2019 when Ethereum will find its real business adoption and the DApps on its blockchain will rise. Following which in 2020 Ethereum will massively scale up as its adoption would increase as the coin would become more mainstream.
Crypto economics my perspective / prediction.
— JUNΞ (@JUN_Omise) July 30, 2018
2019 : Real business adoption / UIUX focus tools / More Dapps
2019~2020 : #Ethereum massively scale and used by gov.
We will see huge difference between real adoptable protocol and toxic speculation project.
— JUNΞ (@JUN_Omise) July 30, 2018
With Ethereum, in technical sense available at dirt cheap prices and fundamentally on the cusp of ending its problems, looks like the coin is about to see its new highs again much like what Lee anticipates. What now awaits is the implementation of new technologies and updates which if it happens in time investors would definitely make Ethereum their top bet.
Will Ethereum rise from the ashes again and gain new heights? Do let us know your views on the same.