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Ethereum (ETH) could be preparing for a major rally, according to Fundstrat Global Advisors Managing Director Mark Newton, who believes the asset’s recent weakness will soon give way to a powerful upward move. Newton’s analysis suggests that the ongoing correction represents the final stage of a “three-wave pullback,” setting the stage for a potential surge toward $5,500.
Fundstrat Predicts End of Correction Phase
Newton explained that Ethereum’s recent decline is part of a typical market structure correction and that the crypto market’s weakness “should not be over-interpreted.” He expects ETH to bottom out within the next one to two days before resuming its upward trajectory.
“I do not make much of crypto weakness in recent days and expect ETH likely bottoms out over the next 1–2 days before heading back higher,” Newton said, emphasizing that technical indicators remain constructive for a continuation of the bullish trend.
His comments were amplified by Tom Lee, Fundstrat adviser and chairman of Bitmine, who shared Newton’s analysis on Thursday. Newton also identified a “minor three-wave pullback” formation on Ethereum’s chart, which he believes will conclude over the weekend — signaling a likely rebound.
Key Support Levels and Near-Term Outlook
According to Newton, Ethereum has already corrected significantly from its late-September rally. The asset may still see a short-term dip to around $4,200, which he identifies as an “optimal area of support.” Once this level holds, ETH could begin its next leg upward, targeting $5,500.
Ether reached a weekly high of $4,750 earlier in the week before retreating below $4,300 in late trading Thursday. As of Friday morning, the asset had stabilized near $4,400, remaining within a consolidation channel formed since early August when ETH first broke above $4,000.
Technical indicators show that Ethereum’s range-bound behavior since August has created a strong base for its next breakout move, with rising institutional interest and positive macroeconomic sentiment supporting the bullish case.
Analysts View Dips as Strategic Accumulation
Crypto analyst Benjamin Cowen noted that Ethereum’s current sideways action is a normal part of a bullish market structure. He expects volatility to persist until the “bull market support band” — a key moving average zone — catches up to price levels, which may take several more weeks.
Meanwhile, Nassar Achkar, Chief Strategy Officer at CoinW exchange, said Ethereum’s potential to revisit its all-time highs is growing amid changing global economic conditions.
“Ethereum’s potential to reclaim all-time high price levels is increasing ahead of potential macroeconomic shifts amid a weakening U.S. economy,” Achkar told Cointelegraph.
He added that the expected Federal Reserve policy easing could inject liquidity into financial markets, creating favorable conditions for risk assets like Ethereum. “Any near-term dips are strategic accumulation opportunities,” Achkar said, reinforcing the view that investors should see corrections as buying opportunities.
Institutional Accumulation Strengthens Ethereum’s Outlook
Institutional activity continues to play a major role in Ethereum’s long-term outlook. Grayscale has recently been staking large amounts of ETH for its newly launched staking fund, depositing hundreds of millions of dollars’ worth of tokens on the Beacon Chain, according to on-chain data from Arkham Intelligence.
This wave of staking underscores growing institutional confidence in Ethereum’s future, particularly after its transition to a proof-of-stake (PoS) network and its expanding role in tokenized financial products.
“Ethereum is quietly becoming the foundation of global finance,” said Joseph Chalom, co-CEO of SharpLink, the world’s second-largest corporate Ethereum holder. “It’s the most important structural opportunity of this decade and the trust layer for the next financial system.”
SharpLink currently holds 838,730 ETH, valued at approximately $3.67 billion, reflecting the deep institutional confidence in Ethereum’s long-term potential.
Bitmine Expands Its Ethereum Treasury
Adding to the institutional bullishness, Tom Lee’s Bitmine further increased its holdings this week. On Thursday, Bitmine added 23,823 ETH — worth about $103 million — to its corporate treasury, according to data tracked by Arkham.
Bitmine remains the largest corporate Ethereum holder, with a treasury exceeding 2.83 million ETH (around $12.4 billion). The firm has stated that it aims to accumulate up to 5% of Ethereum’s total supply, reinforcing its belief in Ethereum’s dominance in the evolving decentralized finance ecosystem.
The Road to $5,500 and Beyond
With technical analysts predicting a short-term bottom, institutions accumulating aggressively, and macroeconomic conditions turning favorable, Ethereum appears well-positioned for its next major rally.
If Newton’s forecast proves accurate, a sustained move above $4,750 could trigger a fresh leg toward $5,500, a level not seen since Ethereum’s last major bull cycle.
As the network continues to attract both corporate and institutional support, Ethereum’s role as the foundation for decentralized finance and digital asset infrastructure remains more vital than ever.
