According to Tom Lee, based on information from Mark Newton - Technical Strategy Director at Fundstrat Global - Ethereum will not drop below $4,000 in the near future. Newton predicts that ETH will 'hit a low in the next 12 hours at around $4,300'. In fact, ETH dropped to $4,341 on Monday morning before recovering above $4,550.

Lee and Newton also agree that ETH has the potential to reach $5,450 before experiencing a slight correction to around $4,800 in mid-September. This belief is reinforced by a survey from Myriad Linea Market, in which 80% of participants believe that ETH will surpass $5,000 this year.

Cautious perspective: ETH is in an 'Overbought' state

However, not everyone agrees with the immediate optimistic forecast. David Morrison - Senior Analyst at TradeNation - warns that ETH is in an 'Overbought' state based on the daily MACD indicator. He believes that ETH may need some time to correct or move sideways to relieve pressure, similar to the current trend of the U.S. stock index.

'Ethereum may still rise by the end of the year, but at this point, I think Bitcoin's growth potential is more attractive,' Morrison emphasized.

The impact of economic and seasonal factors

Simon Peters - an analyst at eToro - adds that September is typically an unfavorable period for the cryptocurrency market. With a 250% increase since April and having just reached a historical peak, ETH may witness profit-taking from long-term investors.

Peters also notes that ETH's performance will heavily depend on the Federal Reserve's interest rate decision at the meeting on September 16-17. If the Fed maintains interest rates instead of cutting them as expected, ETH may face further short-term downward pressure.

Medium and Long-term Outlook: Strong fundamentals for breakthrough

Although cautious in the near term, Peters remains optimistic about ETH's long-term prospects. He highlights the advantages from the regulatory environment in the U.S., strong demand from ETF funds, and the involvement of many listed companies in accumulating ETH. Additionally, the trend of decreasing interest rates and increasing global money supply will drive investment flows into cryptocurrencies.

Glen Goodman - an analyst and author - agrees that Ethereum may outperform many other assets but still faces risks from Bitcoin's volatility. 'ETH can grow even if BTC stagnates, but if Bitcoin drops sharply, ETH is unlikely to escape the impact,' he comments.

Conclusion

Ethereum is at a critical threshold: the possibility of surpassing $5,000 in the coming months is feasible, but the risk of short-term correction remains due to technical, seasonal, and major economic factors. With increasing interest from institutions, ETF products, and a favorable regulatory framework, ETH is still considered one of the most promising digital assets until the end of 2025 - but investors need to be cautious of potential strong volatility in the near future.

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