Key Takeaways
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Comments from Fundstrat’s Tom Lee and a viral Ethereum post have renewed bullish sentiment in some traders.
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Some traders see Ethereum’s recent consolidation as constructive.
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Despite improving sentiment, analysts caution that Ethereum has failed to hold key technical levels.
Bullish predictions for Ethereum’s (ETH) price have resurfaced following comments from Fundstrat’s Tom Lee and a now-viral post highlighting a wave of recent announcements from major financial institutions building on the blockchain.
The renewed optimism comes as ETH continues to trade below recent highs, with technical indicators still pointing to near-term caution.
Fundstrat Global Advisors managing partner Tom Lee added to the bullish narrative this week by highlighting a widely shared list of institutions adopting Ethereum.
“A great list put together by Ethereum detailing 35 major financial institutions building on Ethereum in just the past few months,” Lee wrote on X.
Lee’s remarks followed a detailed thread published by Ethereum’s official X account outlining what it described as accelerating institutional adoption of the network.
The executive has consistently highlighted Ethereum’s role as infrastructure for future financial systems as a key driver of its long-term value.
Earlier this month, Lee claimed Ethereum could reach $250,000, marking one of his most bullish predictions yet.
“If Bitcoin gets to a million, that would value ETH at $250,000,” he said.
In its recent X post, Ethereum described itself as the “#1 choice for global financial institutions,” citing more than 30 recent initiatives involving banks, asset managers, payment firms, and technology companies.
Examples cited included Kraken’s launch of tokenized U.S. stocks and exchange-traded funds (ETFs) as ERC-20 tokens on Ethereum, Fidelity’s introduction of a tokenized money market fund, and BlackRock’s filing for a staked ether exchange-traded fund.
Other developments highlighted included JPMorgan migrating its tokenized deposit product to Ethereum’s Base layer-2 network and Stripe expanding stablecoin-based subscriptions built on Ethereum.
Ethereum also pointed to growing adoption by technology and payments firms, including Google’s work on an agent payments protocol that uses stablecoins on the network.
The stream of institutional announcements has helped fuel bullish sentiment among traders, with some viewing Ethereum’s recent price consolidation as constructive.
One trader, posting under the name Merlijn The Trader on X, said Ethereum was “compressing in an uptrend,” adding that repeated higher lows suggested buying pressure was building.
He said a clean break above $3,400 could open the way for “a push toward $4000+.”
Other traders have similarly suggested Ethereum may be forming a base following recent pullbacks.
Not all signals point decisively higher.
Victor Olanrewaju, a crypto analyst at CCN, said Ethereum’s failure to break above resistance near $3,438 on the daily chart showed sellers remain in control of that level.
“That rejection matters because it shows sellers still control the supply zone, and buyers have not forced a clean trend expansion yet,” Olanrewaju said in a recent report.
He added that momentum indicators have weakened, noting a sharp drop in the Money Flow Index, which he said signals fading demand.
Ethereum has also slipped below its 20-day exponential moving average, a development Olanrewaju said often marks a shift from “buy-the-dip” to “sell-the-rally” behaviour.
“If this setup holds, Ethereum’s price risks breaking the support near $3,100,” he said, warning that a move below the $3,000 psychological level could follow if selling pressure increases.
However, Olanrewaju said the bearish outlook would be invalidated if Ethereum reclaimed the 20-day EMA and broke above $3,438.
In that scenario, he said Ethereum could rally toward $3,942, with a further extension toward $4,300 if momentum accelerates.
The post Ethereum to $4,000? Traders Turn Bullish as Tom Lee Backs ‘Great’ Viral List Showing Institutional Surge appeared first on ccn.com.