Ethereum’s recent price weakness may soon give way to a powerful rebound, according to Mark Newton, Managing Director at Fundstrat Global Advisors. Newton believes the second-largest cryptocurrency could bottom out near $4,200 over the coming days before resuming its uptrend and rallying toward $5,500.
His analysis, shared by Fundstrat co-founder Tom Lee, suggests that the current pullback is part of a normal technical correction following Ethereum’s strong rally from September 25 to October 7. “I do not make much of crypto weakness in recent days, and expect ETH likely bottoms out over the next 1-2 days before heading back higher,” Newton said.
Technical Support Around $4,200 – $4,220
Newton highlighted that Ethereum (ETH/USD) has already retraced around 50% of its late-September rally, adding that the $4,200–$4,220 zone could serve as an “optimal area of support.” He described the current move as a “minor three-wave pullback” that is likely to end by October 11, setting the stage for a renewed push higher.
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. Â
– 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
At the time of writing, Ethereum trades near $3,840, following a sharp correction triggered by broader crypto market turmoil linked to President Donald Trump’s new 100% tariffs on Chinese imports. The sudden announcement rattled global markets, leading to widespread liquidations across risk assets.
A Rebound in Sight
Despite near-term volatility, Newton remains optimistic, noting that Ethereum’s structural trend remains bullish. “The next leg higher could push ETH toward $5,500,” he said, suggesting that the recent decline offers a strong accumulation opportunity for long-term investors.
This outlook comes as technical indicators such as the average crypto RSI (29.29) show oversold conditions across the market, hinting that a rebound phase could soon begin if macro pressures ease.