Ethereum is preparing for a jump towards $5.500, according to Mark Newton.

Ethereum could experience renewed bullish momentum, according to Fundstrat, which projects a rise to $5.500 after a three-wave technical correction.

Mark Newton, managing director of Fundstrat Global Advisors, believes Ethereum could be on the verge of a new price surge, according to his latest technical analysis. The expert believes the market for the world's second-largest cryptocurrency is in a finalizing a key correction which would open the door to a bullish momentum in the short term.

Newton argues that Ethereum is completing a "three-wave correction," a common pattern in technical analysis that often precedes strong recovery moves. If the pattern is confirmed, the asset could climb to $5.500 in the coming days, a level that would mark a notable change in trend compared to its recent performance.

The analyst emphasizes that chart patterns and accumulation indicators reflect a solid foundation of investor support, reinforcing the possibility of a sustained rally. In his opinion, Ethereum is once again emerging as an asset capable not only of reaching its all-time high, but also of consolidating among the most stable and attractive in the digital ecosystem.

Ethereum recovers and points upwards after the tariff crisis

Despite the downward pressure caused by the recent tariff war between the United States and China—a trade tension that led Ethereum to reach $3.600 last week—the cryptocurrency has managed to recover strongly. At the time of writing, its price remains stable above $4.000, a level that fuels optimism among analysts and traders.

One such analyst, Newton, bases his reading of the market on the Elliott wave theory, a classic tool that allows for identifying and anticipating price cycles. According to its assessment, Ethereum is in the final phase of an ABC corrective structure. Wave C, which completes the pattern, is reportedly very close to ending, opening the door to a new phase of sustained growth. In other words, the adjustment phase could be coming to an end, giving way to a bullish momentum.

This interpretation of the ETH market is shared By Tom Lee, president of BitMine and CIO of Fundstrat, who believes the market is undergoing a healthy transition. Both experts emphasize that Ethereum's technical foundation remains solid and that the accumulation signs visible on the charts reinforce the case for a rise in the short and medium term.

The asset's performance on analytics platforms like TradingView also provides clear clues. Growing activity at key support levels, coupled with renewed interest from institutional investors, strengthens expectations that Ethereum is paving the way for a move to new highs. The market, although still volatile, presents a narrative that many consider favorable: a cryptocurrency that absorbs the impact of geopolitics and emerges with momentum for its next bullish move.

The impetus behind the new Ethereum optimism

Mark Newton has set an ambitious target: a price of $5.500 per ETH in the short term, which would represent not only a significant jump from its current price but also a new all-time high (ATH) above the current $4.946. This forecast is based on the expectation of a recovering market, accompanied by technical indicators that typically predict phases of bullish momentum in the asset.

At a structural level, the data also supports the optimistic narrative. Ethereum's supply on asset exchanges has fallen to its lowest point in nine years, a clear sign that investors, especially institutions, are accumulating the asset with a long-term view. In parallel, exchange-traded funds and investment platforms have increased their exposure to the token, interpreting the current consolidation phase as an opportunity ahead of a significant new move.

Taken together, the reduced supply and growing institutional interest paint a picture of a scenario in which Ethereum could regain its role as a benchmark within the altcoin market, supported by renewed confidence and solid technical fundamentals.

Charts predict a new rebound in the short term

Fundstrat's prediction comes at a time when the market is seeking stability following recent macroeconomic events. Although trade tensions between the United States and China have caused price fluctuations, experts highlight the unexpected strength Ethereum has demonstrated in its technical structure.

Furthermore, Newton emphasized that his analysis is primarily based on charts, placing greater importance on technical data than external factors. This position has been supported by other experts, who have identified clear signs of accumulation on Ethereum's charts, which anticipates a favorable move in the short term.

Fundstrat's optimistic outlook is strengthened by the combination of three key factors: solid technical indicators, a notable decline in available supply on exchanges, and a surge in institutional interest. Under these conditions, the forecast for Ethereum reaching $5.500 doesn't seem exaggerated, but rather a goal aligned with its historical performance and the growing maturity it has shown within the crypto market.

Therefore, the Fundstrat analyst's Ethereum projection marks a turning point in the digital market's technical analysis. According to this, the asset is about to close its corrective phase and begin a new phase of sustained growth. 

If the prediction comes true, Ethereum could not only surpass its previous record, but also cement its position as one of the strongest and most promising assets in the current financial environment.