OPTIMISM AS A WALL STREET VETERAN SEES POTENTIAL GAINS IN CRYPTOCURRENCIES
In the past few weeks, the price of Ethereum has been on a free fall. The ETH/USD pair has reached a multi-monthly low of $360. The decline was caused by the continuation of bad news in the cryptocurrencies space.
However, there might be some of hope if Wall Street veteran, Tom Lee is to be believed. Yesterday, Tom Lee, the founder of Fundstrat released a report that showed that cryptocurrencies would rebound after 15th April. His thesis was that most Americans who own cryptocurrencies have been forced to sell the currencies as they filed their tax returns.
The report predicted that Americans had capital gains on cryptocurrencies worth more than $92 billion. As such, they will be forced to pay more than $25 billion in capital gains taxes. As you recall, cryptocurrencies were the best performing asset class of last year with most of them rising by more than 1000%.
Fundstrat is one of the leading Wall Street advisory firms with clients in the hedge fund and money management industry. Tom is also a favorite for major financial broadcasters like CNBC, Fox Business, and Bloomberg.
From a technical perspective, there is a likelihood that Ethereum has found a floor. This year, the ETH/USD pair reached the all-time high price of $1375, where it established a double top position. From the end of January, it started a sharp decline, ultimately reaching the current lows. However, if Lee’s sentiments are correct, there is a likelihood that the pair could see some gains. As shown below, the MACD, the RSI, and other oscillator indicators show that the pair is currently oversold.