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Wall Street's Tom Lee backs Ether to bounce back stronger

Wall Street's Tom Lee backs Ether to bounce back stronger

The year wasn't that great for Ether. But, Tom Lee believes that the virtual currency will make a comeback and bounce back stronger.

Ether is the world's second-largest digital currencies in terms of market capitalization, but its prices have surged more than 70 percent since January and has not been able to find stability after a breakthrough since 2017.

Its value has dropped 50 percent and it has underperformed so far this fiscal year.

"We believe that Ethereum will stage a comeback and would witness a trend reversal soon," said Lee, the managing director and head of research at Fundstrat Global Advisors, said in a note.

Ether was the best cryptocurrency last year and it had managed to outperform Bitcoin but in 2018, it has failed to carry forward its form.

Lee also believes that the sentiment is currently overly negative on Ethereum. While it has underperformed its peers by two standard deviations, he said that it was a sign of capitulation.

Lee was earlier the Chief Equity Strategist in the JP Morgan and he said that the cryptocurrency was dogged by EOS that built its platform on Ethereum but later on, it went on to switch to its new token. Lee also emphasized on the question about the blockchain technology and raised questions on the panic selling by the ICO teams.

Ethereum was going strong till January as the investors of the crypto world saw its utility as an opportunity and boosted its price above $ 1,100 earlier this year, but it was trading, reports suggest.

Lee concluded that threats to ethereum include a "challenging technical picture".

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