Tom Lee, co-founder of Fundstrat Global Advisors, expressed strong optimism about Ethereum’s (ETH) price trajectory, stating that the cryptocurrency is poised for a major rally after a brief corrective phase.

Mark Newton, Managing Director at Fundstrat, noted that he is not concerned about the recent weakness in the crypto market. He expects Ethereum to dip to around $4,200 in the coming days before rebounding to a high of $5,500.

Crypto savant @MarkNewtonCMT at it again:

"I do not make much of Crypto weakness in recent days, and expect $ETHUSD likely bottoms out over the next 1-2 days before heading back higher and rallies to $5500.  

– Following a recent strong technical rally from 9/25 into 10/7 in… pic.twitter.com/LCQDtGpDXs

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) October 9, 2025

Institutional Accumulation Signals Growing Confidence

Newton anticipates Ethereum will find its short-term bottom within the next one to two days and begin an upward reversal, suggesting that a “minor third-wave correction” could conclude over the weekend. Despite volatility in the altcoin market, institutional investors remain steadfastly bullish on Ethereum.

According to data from Arkham Intelligence, Grayscale has deposited hundreds of millions of dollars’ worth of ETH into the Beacon Chain in recent days as part of its newly launched staking service. This move underscores a growing institutional commitment to Ethereum’s long-term network fundamentals.

Fundstrat’s Tom Lee’s firm, Bitmine, has also reportedly increased its ETH holdings, reflecting continued institutional interest in the asset.

Analysts See Strategic Buying Opportunity

Many market strategists are interpreting the recent pullback as a strategic accumulation phase. CoinW Exchange’s Chief Strategy Officer, Nassar Achkal, commented that shifting macroeconomic trends in the United States, particularly growing expectations for monetary easing, could drive Ethereum toward new all-time highs in the months ahead.