A prominent cryptocurrency expert on Wall Street has indicated that the Ether digital currency is likely to rally following a significant loss in value in 2017.
Tom Lee, co-founder of an advisory firm for institutional investors, wealth advisors, pension funds, and high net worth individuals, stated that Ether has experienced a 70 percent decline in value this year, with a 50 percent drop in the last three months alone, following an impressive performance in 2017 that surpassed even Bitcoin.
Lee, previously a chief equity strategist, remarked that historical patterns suggest Ethereum, the blockchain underlying Ether, is on the verge of a strong rally. He noted, “We believe Ethereum is about to stage a trend reversal and rally strongly,” in a recent note to clients. Lee highlighted that on the four prior occasions when Ether underperformed compared to other digital currencies, it subsequently witnessed a major trend reversal. He added that the current sentiment towards Ether is excessively negative.
Ethereum’s real-world applications led to predictions last year that Ether might surpass Bitcoin as the most valued cryptocurrency. However, the emergence of EOS, initially built on Ethereum but now functioning on its own token, has become the fifth most valuable cryptocurrency.
In summary, Tom Lee’s analysis and historical trends suggest that Ethereum is poised for a significant recovery, despite recent losses and the rise of competitors like EOS.