Tom Lee’s Fundstrat Predicts Ethereum Rally to $5,500 Following ETH ‘Bottom’

Fundstrat’s analyst Mark Newton is doubling down on their Ethereum prediction of a rally above $5,000 to new all-time highs (ATH). This comes amid the recent crypto market crash, which led to an ETH decline below $4,000.

Fundstrat Predicts Ethereum Rally To $5,500

In an X post, Tom Lee shared an analysis from his colleague Mark Newton, who stated that he expects ETH to bottom out over the next one to two days before heading higher and rallying to $5,500. Newton further remarked that the ETH pullback is likely to end by October 11, with the altcoin then heading higher.

The analyst also noted how Ethereum has seen a minor three-wave pullback following a recent strong technical rally from September 25 to October 7. However, based on his analysis, the ETH pullback is now over, with a major rally on the horizon.

Notably, this comes amid the recent crypto market crash, which saw ETH drop to as low as $3,400. Newton has earlier stated that the altcoin was likely to hit between $4,200 and $4,220, which would provide an optimal area of support before it rallies higher.

However, the severity of the market crash pushed Ethereum below the projected support level. The market crash had occurred after U.S. President Donald Trump announced a 100% tariff on China, sparking panic among market participants.

The Market Pullback Was Overdue

Tom Lee, the Chairman of the Ethereum treasury firm BitMine, said during a CNBC interview that the market pullback was overdue. He noted that since the April low during the Trump tariffs, the market has gained 36%.

Although he was mainly referring to stocks, the crypto market has also recorded massive gains since the April lows. The ETH price had notably recorded a gain of over 100% during the tariff period, reaching a new all-time high (ATH) in the process.

Thanks to the market crash, Tom Lee’s BitMine currently has a floating loss of around $1.9 billion on its Ethereum investment. However, the company looks to be doubling down on ETH despite this development.

Onchain analytics platform Onchain Lens revealed that three wallets likely belonging to BitMine have withdrawn 78,824 ETH, worth $302.12 million, from Kraken. The company is the largest public ETH holder, holding over 2% of the altcoin’s total supply.