ETH Tests $2.8K Support, Tom Lee Declares Bottom Is In – Potential $7K Breakout Ahead?
Ethereum (ETH) has once more examined the critical $2,870 support for the primary time since July, which then preceded a 72% rally to a brand new all-time high.
Fundstrat CIO and Bitcoin Chairman Tom Lee has now declared that the ETH backside is probably going in, following the $2,800 assist take a look at that instantly resulted in a rebound above $3,000 at press time.
Speaking on CNBC, Tom Lee advised reporters that he stays bullish on Ethereum due to the numerous innovation going down on the community, together with stablecoin creation and Larry Fink and BlackRock choosing it to tokenize real-world assets.
Lee mentioned that “this may convey shares, bonds, actual property onto the blockchain, and it requires a impartial and a 100% uptime blockchain, and that’s Ethereum.”
Tom Lee Says ETH Bottom Is In, Target $7K by Q1 2026
Lee added that the worth of Ethereum fluctuates as a result of crypto remains to be in its adoption stage, which brings a whole lot of volatility, and ETH isn’t spared from it.
He admitted that Ethereum has been in a downtrend “sadly”; nevertheless, he believes the underside is in and ETH ought to escape in direction of $7,000 going into Q1 2026.
Analysts at CryptoQuant additionally observed that Ethereum’s fall to $2.87k has introduced in an area backside.
The analyst added that the $2.8k space is prone to act as an necessary on-chain assist stage for Ethereum, as this zone aligns with the realized value clusters of each retail buyers and whales.
“Historically, realized value ranges have usually marked cycle bottoms, suggesting that this vary might as soon as once more present a basis for a short-term rebound.”
Crypto analyst CryptoMe additionally added that Ethereum’s slip in direction of $2,800 implies that ETH is on the common value of what diamond-hand whales paid for it 4 months in the past.
According to him, “In that case, an investor can purchase slowly, step by step, in steps, calmly, and at all times keep in mind: it is a long-term plan, not a short-term commerce.”
Whales and establishments like BlackRock at the moment are going all in on Ethereum.
Yesterday, the main asset supervisor revealed its plan to file for a Staked Ethereum ETF, as per the Delaware identify registration beneath the ’33 Act.
This means BlackRock could have not one however two ETH ETFs.
Aside from the present iShares Ethereum Trust ETF (ETHA), a brand new Ethereum ETF solely centered on staking could be launched to supply a 99% staking choice for the fund, the place buyers will obtain a better actual yield.
And for each $1 of ETH staked, it provides 3x equal worth to Ethereum’s market cap on the peak bull run.
Plus, establishments are more likely to purchase into the staked ETF than the non-staked model as a result of APR is what all of them crave.
This institutional demand and relentless bid from DATs and retail buyers is anticipated to ship ETH to new highs round $7k.
Fibonacci Extensions Point to $5.75K–$6.5K Breakout Zone
On the technical entrance, the 3-day chart exhibits ETH breaking down from an area distribution vary and pulling again into a significant demand zone across the 50% retracement stage at roughly $4,150–$3,900.
Price is presently sitting simply above the $3,000 assist, with a broader liquidity pocket extending towards the 100% retracement close to $3,350.
Above the worth, the fib extension cluster between $5,750 and $5,950 stands out as the subsequent main magnet.
The circled area across the –50% and –61.8% extensions exhibits clear confluence, suggesting that if ETH efficiently reclaims $4,150 and rotates upward, that zone turns into probably the most possible medium-term goal.
The larger extensions towards $6,565 and past solely activate after a decisive break and retest of the $4,950 mid-range stage.
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