Ethereum price continued its recovery, moving from this month’s low of $2,627 to the current $3,035. According to Tom Lee, the Chairman of BitMine, this recovery may accelerate, potentially to $9,000 in the next few years.
Tom Lee Delivers Bullish Ethereum Price Forecast
ETH price continued its recovery, mirroring the performance of Bitcoin and other coins. In a recent Yahoo Finance interview, Tom Lee, who has become a major Ethereum buyer, maintained his bullish view of the coin.
Lee explained that the recent Ethereum crash was an “engineered washout” that started on October 10 when the crypto market plunged and liquidations soared to over $20 billion.
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He believes that the Ethereum price has major tailwinds in the coming months, which will push it to $9,000. In the long term, he believes that the coin will soar to $60,000, a move that will push its market cap to over $7.2 trillion.
Lee sees tokenization as a major tailwind that will boost its performance. For one, data compiled by RWA shows that Ethereum has a big market share in the sector with a total value locked (TVL) of over $11 billion. This is notable as the industry has over $35 billion.
Analysts believe that the tokenization industry is in its infancy and that assets worth trillions of dollars will ultimately be tokenized. In all this, Ethereum’s track record, neutrality, and regular upgrades will make it the default chain for this industry.
Lee also expects that Ethereum will benefit from the ongoing growth of stablecoins. Data shows that the total stablecoin value stands at about $300 billion, while the number of holders has jumped to 204.57 million. Ethereum has the biggest market share in the stablecoin industry, with over $181 billion in assets.
ETH Price Technical Analysis
The daily timeframe chart shows that Ethereum price bottomed at $2,627 last week and has started moving upwards. It is now approaching the 50% Fibonacci Retracement level at $3,175.
ETH has formed the highly bullish pattern known as the falling wedge. This pattern is made up of two falling and converging trendlines. It has now moved above the upper side of this pattern.
The Relative Strength Index (RSI) and the MACD indicators have all pointed upwards. Therefore, the token will likely continue rising as bulls target the 38.2% retracement level at $3,600. A drop below the support at $2,627 will invalidate the bullish outlook.
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