Things may be looking up for Ether, the second most popular digital coin, according to cryptocurrency advocate Thomas Lee.
The token, which has suffered a severe sell-off this year as investors retreated from the virtual-asset market, is about to bounce back, Lee wrote in a note to clients Thursday. Ether has lost half of its value in the past three months and has underperformed large-cap coins by two standard deviations, which could signal that it’s time for a rebound, he said.
“Ethereum is about to stage a trend reversal and rally strongly,” said Lee, head of research at Fundstrat Global Advisors. “Sentiment is currently overly negative.”
Historically, when Ether has underperformed peers by two standard deviations, it has reversed those losses, noted Lee, who expects the token to reach $1,900 by the end of the year. It’s currently trading at around $218. Lee has a $25,000 price target on Bitcoin, which is currently worth about a quarter of that.