Fundstrat head of research Tom Lee said he expects Ether to rebound quickly following recent declines, arguing the asset has experienced eight such recoveries since 2018.
“A lot of people are frustrated, but keep in mind that Ethereum, since 2018, has fallen more than 50% eight times,” Lee said at a conference in Hong Kong on Wednesday.
Last year, Ethereum fell 64% from January to March, he added.
He argued that nothing has changed and that Ether (ETH) will see another V-shaped bottom.
The previous eight drawdowns saw V-shaped recoveries for ETH. Source: FundstratETH is close to the bottom, says Lee
BitMine market analyst Tom DeMark flagged the $1,890 price level as a potential bottom but said it would tap this twice in an “undercut.” Lee stated that this would be a “perfected bottom,” adding:
Related: Analysts debate whether Ether has capitulated or has further to fall
Ether prices on Coinbase tanked to $1,760 on Feb. 6, just short of the 2025 low of just over $1,400, according to TradingView.
The asset has failed to hold above $2,000, falling to $1,970 at the time of writing following a 37% crash over the past 30 days.
Ether staking entry wait at all-time high
Despite the asset’s poor performance this year, data shows there is still strong demand for Ether staking.
The current wait to stake Ether is at an all-time high of 71 days with a record 4 million ETH in the validator entry queue, according to ValidatorQueue. The percentage of supply staked is also at a record high of 30.3% or 36.7 million ETH.
The obvious impact of this is a “massive supply restriction,” said analyst “Milk Road” on Wednesday.
“One-third of all ETH is now illiquid, earning a modest 2.83% APR,” they added. “That’s not sexy yield by crypto standards. Yet people are lining up anyway.”
Ethereum staking entry queue at peak wait times. Source: ValidatorQueueMagazine: Bitcoin difficulty plunges, Buterin sells off Ethereum: Hodler’s Digest
Source: https://cointelegraph.com/news/ether-prices-v-shaped-recovery-says-tom-lee?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
