Fundstrat predicts ETH 3-wave pullback will end soon, with a potential rally toward $5,500, supported by strong institutional backing.
Ethereum (ETH) has been experiencing a three-wave pullback after its recent rally.
According to Fundstrat’s Mark Newton, this pullback is expected to end soon, with Ether on track to hit a target of $5,500. As of the latest data, Ether is trading at around $4,331, with analysts anticipating a brief bottoming out before a significant upward movement.
Fundstrat’s Prediction of an ETH Reversal
Fundstrat’s Managing Director Mark Newton predicts that ETH will soon find its support levels. In a recent update, Newton mentioned that Ether’s price could decline to around $4,200 before making a rebound.
He stated, “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 further explained that the three-wave pullback, which is a common market pattern, will conclude shortly, and a surge toward $5,500 could follow.
Crypto savant @MarkNewtonCMT at it again:
"I do not make much of Crypto weakness in recent days, and expect $ETHUSD likely bottoms out over the next 1-2 days before heading back higher and rallies to $5500.
– Following a recent strong technical rally from 9/25 into 10/7 in… pic.twitter.com/LCQDtGpDXs
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) October 9, 2025
Ether reached a high of $4,750 in early October but recently dropped below $4,300. This decline is part of the larger correction since September. Newton’s analysis suggests that the market will soon stabilize and resume upward momentum.
Accumulation Opportunities for Investors
Crypto analyst Benjamin Cowen noted that the recent price volatility in Ether is likely to continue until the market stabilizes.
He stated that the “choppy price action” would persist until the “bull market support band catches up.” This could take several more weeks, presenting potential buying opportunities for long-term investors.
According to Nassar Achkar, Chief Strategy Officer at CoinW Exchange, Ethereum’s price action is influenced by macroeconomic factors.
“The anticipated bounce is driven by a constructive technical setup and expectations of a liquidity boost from potential Federal Reserve policy easing,” he said. He emphasized that dips in price present strategic accumulation opportunities ahead of the projected upward trend.
Institutional Support for Ether’s Growth
Institutional investors continue to show strong support for Ethereum, which is contributing to its long-term bullish outlook.
Grayscale, a leading crypto investment firm, has been accumulating and staking Ethereum. According to Arkham Intelligence, Grayscale has deposited hundreds of millions in Ethereum onto the Beacon Chain, which is a sign of confidence in the network’s future growth.
SharpLink’s Co-CEO Joseph Chalom also expressed strong support for Ethereum. He noted, “Ethereum is quietly becoming the foundation of global finance.” Chalom described Ethereum as the “most important structural opportunity of this decade,” suggesting that the network could play a key role in the next financial system.
Meanwhile, Bitmine, led by Tom Lee, continues to expand its Ethereum holdings. The firm recently added 23,823 ETH to its treasury, valued at approximately $103 million. This move further solidifies Ethereum’s position as a key asset for institutional investors.
Bitmine keeps accumulating $ETH — 5 hours ago, they received another 23,823 $ETH($103.68M) from BitGo.https://t.co/DLOO6fgc7Khttps://t.co/w5uTBr9jZg pic.twitter.com/nScuFMDf5X
— Lookonchain (@lookonchain) October 10, 2025
Ether’s current market trends suggest that the recent pullback may be short-lived. With support from both retail and institutional investors, Ethereum’s price could see significant growth once the pullback concludes, potentially reaching the $5,500 target set by Fundstrat.
