Ethereum (ETH) will reach $ 1,900 before the end of the year, says Tom Lee

Tom Lee predicts that Ethereum will undergo a massive price rally in the final months of the year. The head of research at Fundstrat Global Advisors advises the second-level cryptocurrency to reach $ 1,900 before the end of 2018. XRP briefly overshadowed Ethereum to claim second place in the market capitalization charts before resuming its place.

Imminent price rally for Ethereum

Second Bloomberg, cryptocurrency bull, Tom Lee expects an upcoming turnaround for Ethereum in the fourth quarter of 2018. In a letter to Fundstrat customers Thursday (September 27, 2018), Lee identified the recent Ethereum struggles with the loss more than 50% of its currency in the third quarter of 2018.

Lee pointed out that Ether has underperformed its top-ten counterparts of two standard deviations. According to Lee, such a situation means that Ethereum will rebound in prices. Commenting on the matter, Lee said:

Ethereum is going to stage a turnaround and gather strongly. The feeling is currently excessively negative.

For Lee, his predictions are based on the historical performance of Ethererum when he underperforms the best coins of two standard deviations. According to the head of Fundstrat, when such situations occur, ETH always bounces back, recovering its losses.

The cryptocurrency bull also expects the ETH price to reach $ 1,900 by the end of the year. At the time of printing, the price of ETH is $ 226, up more than six percent in the last 24 hours.

Ethereum 2018 Price Struggles

The recent negative trend of Ethereum flies in the face of the high correlation of prices that exists in the cryptocurrency market. Bitcoins, altcoins and ICO tokens often appear strongly associated with small price deviations.

For ETH, the problem seems to stem from the failure of many ICO projects, as well as from a strengthening of the US dollar. Most of the ICO projects are domiciled on the Ethereum blockchain and contribute immensely to the meteoric increase in cryptocurrency.

However, after the ICO mania of 2017, many tokens suffered huge selloffs while the projects did not take off. This situation has materially decreased the value of ETH over time. In early August, Ether fell below $ 300, setting a new one-year minimum. Since then, the cryptocurrency has continued in its descending trajectory.

If Lee's predictions came true, then ETH would have increased by over 700 percent. It would also mean that Ethereum would set a new historical maximum (ATH). The previous ATH of ETH is equal to $ 1,349, reached in mid-January 2018.

Image courtesy of Coinmarketcap.