Mark Newton forecasts a short-term bottom around $4,200 before Ethereum resumes its uptrend amid institutional accumulation.
Ethereum (ETH) could be nearing the end of its current correction, with a potential rebound toward $5,500, according to Mark Newton, managing director at Fundstrat Global Advisors. The veteran strategist believes the recent weakness represents a healthy “three-wave pullback” that may conclude within days.
“I do not make much of the crypto weakness in recent days and expect ETH likely bottoms out over the next 1–2 days before heading back higher,” Newton said in a note shared by Tom Lee, Fundstrat adviser and BitMine chairman.
Newton’s technical outlook suggests Ethereum could dip to $4,200 — an “optimal area of support” — before resuming its uptrend. ETH recently retraced from a weekly high near $4,750 to around $4,359, briefly touching sub-$4,300 levels on Thursday. The asset has traded in a rangebound channel above $4,000 since early August, following its breakout from the summer consolidation zone.
Analysts view this correction as a strategic accumulation opportunity, not a trend reversal. Benjamin Cowen, another prominent market analyst, noted that Ethereum’s “choppy price action” could persist until the bull market support band catches up, likely over the next few weeks.
Meanwhile, Nassar Achkar, chief strategy officer at CoinW Exchange, told Cointelegraph that Ethereum’s potential to reclaim all-time highs is increasing amid macroeconomic shifts. “The anticipated bounce is driven by a constructive technical setup and expectations of a liquidity boost from potential Federal Reserve policy easing,” Achkar said.
Institutional sentiment appears to reinforce the bullish narrative. Grayscale has been accumulating and staking ETH for its new fund product, reportedly depositing hundreds of millions of dollars worth of Ether onto the Beacon Chain, according to Arkham Intelligence.
In parallel, SharpLink Gaming, the world’s second-largest corporate ETH holder, now controls 838,730 ETH (≈$3.67 billion), while Tom Lee’s BitMine added 23,823 ETH (~$103 million) to its reserves on Thursday.
“Ethereum is quietly becoming the foundation of global finance,” said SharpLink co-CEO Joseph Chalom, calling it the “trust layer for the next financial system.”
With technical support forming near $4,200 and rising institutional accumulation, analysts suggest that Ether’s next leg higher could retest $5,500 as early as late October if broader risk sentiment stabilizes.
Disclaimer
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