Ethereum to Hit $5,500 by Mid-October: Tom Lee

Ethereum (ETH), the second-largest cryptocurrency by market cap, continued printing red candles today, marking the fourth consecutive day of decline. While the recent downturn signals short-term weakness, some analysts see it as a setup for a potential rebound.

Supporting this perspective, Tom Lee, chairman of BitMine, believes ETH could climb to $5,500 in the coming weeks. He based his outlook on market analyst Mark Newton’s technical view, which frames the current pullback as temporary rather than a lasting reversal.

Ethereum Eyes 26% Rise Toward $5,500

In his X post on Tuesday, Mark Newton predicted ETH could drop to $4,418 or $4,375 before stabilizing. He described these levels as potential support zones that could attract renewed buying interest.

The analyst stressed that such dips often provide better entry points rather than signaling deeper weakness. He also pointed out that ether is unlikely to fall below its prior low of $4,233. This perspective aligns with Tom Lee’s expectation of a potential rebound toward higher levels.

Building on this framework, Lee suggested Ethereum could rally strongly once the pullback is complete. He forecasted a climb to $5,500 by mid-October, pointing to improving conditions for digital assets. That would mark a nearly 26% rise from Newton’s lower target of $4,375.

Lee Expects Crypto Boost From Fed

In a recent CNBC appearance, Tom Lee said Ethereum and the apex crypto bitcoin could see a “monster move” within three months. He tied this outlook to expectations around monetary policy shifts in the United States.

Lee pointed to the Federal Reserve, which is expected to cut interest rates by 25 basis points this week. If confirmed, this move would mark the start of a new easing cycle and inject fresh liquidity into financial markets.

He argued that this environment could boost risk assets like ether and bitcoin. Lee’s $5,500 Ethereum target may gain credibility if liquidity expands as he expects.

For now, ETH continues to trade within the range highlighted by Mark Newton’s support zones. Market participants remain focused on short-term volatility while weighing the possibility of a notable recovery.

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