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Posted on September 28, 2018 by staff

Ethereum tipped to rally strongly by Wall Street crypto bull

Ethereum tipped to rally strongly by Wall Street crypto bull

Lee says "sentiment is currently overly negative on ETH"
CNBC
Lee says "sentiment is currently overly negative on ETH"

A leading cryptocurrency expert on Wall Street has tipped the Ether digital currency to rally after a steep fall in value in 2017.

Tom Lee is the co-founder of Fundstrat, which advises institutional investors, wealth advisors, pension funds and high net worth individuals on the markets.

Ether has lost 70 percent of its value this year – and dropped 50 per cent in the last three months alone – after a stellar 2017 in which it outperformed even market leader Bitcoin.

Former J.P. Morgan chief equity strategist Lee said recent history shows that Ethereum – the blockchain on which Ether is based – is “about to rally strongly”.

“We believe Ethereum is about to stage a trend reversal and rally strongly,” he said in a note to clients on Thursday.

Lee said on the previous four occasions that Ether faltered compared with other digital currencies, it staged a “major trend reversal” – and added that “sentiment is currently overly negative on ETH”.

The real-world uses for the Ethereum blockchain led many to predict last year that Ether would eventually overtake Bitcoin as the world’s most valued cryptocurrency.

Yet blockchain developers now have EOS – which was built on Ethereum before switching to its own token. EOS is now the fifth most valuable cryptocurrency.