A leading cryptocurrency expert on Wall Street has tipped the Ether digital currency to rally after a steep fall in value in 2017.
Tom Lee is the co-founder of Fundstrat, which advises institutional investors, wealth advisors, pension funds and high net worth individuals on the markets.
Ether has lost 70 percent of its value this year 鈥� and dropped 50 per cent in the last three months alone 鈥� after a stellar 2017 in which it outperformed even market leader Bitcoin.
Former J.P. Morgan chief equity strategist Lee said recent history shows that Ethereum 鈥� the blockchain on which Ether is based 鈥� is 鈥渁bout to rally strongly鈥�.
“We believe Ethereum is about to stage a trend reversal and rally strongly,” he said in a note to clients on Thursday.
Lee said on the previous four occasions that Ether faltered compared with other digital currencies, it staged a “major trend reversal” 鈥� and added that 鈥渟entiment is currently overly negative on ETH”.
The real-world uses for the Ethereum blockchain led many to predict last year that Ether would eventually overtake Bitcoin as the world鈥檚 most valued cryptocurrency.
Yet blockchain developers now have EOS 鈥� which was built on Ethereum before switching to its own token. EOS is now the fifth most valuable cryptocurrency.