Emre Yumlu 
The cryptocurrency market has been experiencing heightened volatility, and once again, attention has turned to Ethereum (ETH). The world’s largest altcoin broke past its 2021 all-time high in late August, climbing above $4,900 to set a new record. However, following that surge, ETH faced a correction and recently dropped below the $4,000 mark.
As investors search for direction, a statement from one of Tom Lee’s top analysts has injected fresh optimism into the market. Mark Newton, Managing Director at Fundstrat Global Advisors, stated that the recent pullback in the crypto market is not a cause for concern and predicted a short-term recovery for Ethereum.
Bottom Expected Within 1–2 Days, Followed by a Rally Toward $5,500
According to Newton, Ethereum could form a local bottom within the next one to two days before resuming its upward trend, potentially rallying toward $5,500. His analysis was shared on social media by Fundstrat’s founder, Tom Lee.
Newton explained:
“I’m not overly concerned about the recent weakness in Ethereum and other cryptocurrencies. I expect ETH to bottom out over the next one or two days and then start a strong rally toward $5,500.”
Technical Outlook: A Three-Wave Correction Phase
Newton noted that Ethereum recorded a strong technical rally between September 25 and October 7. Following that move, he observed a minor three-wave corrective pattern, which he believes could end around October 11 — potentially marking the start of the next bullish leg.
This short-term consolidation, according to Newton, reflects a healthy correction rather than a breakdown in trend momentum.
$4,200 Zone as a Key Support Level
Newton further highlighted that Ethereum’s decline after its September rally represents a natural cooling-off period. He identified the $4,200 price range as a crucial support zone — a level that could serve as the foundation for the next major move upward.
“ETH/USD has retraced roughly 50% of the gains from September 25. It’s likely to find support around $4,200–$4,220, which could act as an ideal base before the next rebound.”
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