Tom Lee Says Ethereum Will Bounce Back Quickly
Tom Lee, who is in charge of research at Fundstrat, thinks that Ethereum may soon make a V-shaped recovery after its recent price drop. Lee spoke at a conference in Hong Kong and talked about how historical resilience has come back after big drops. His research shows that the current situation is similar to earlier recovery periods.
Lee said that Ethereum has lost more than half of its value on eight different occasions since 2018, but it has always bounced back quickly. These reversals often happened at the same speed as previous declines, creating classic V-shaped patterns. Such consistency makes bullish interpretations stronger.
Historical Data Supports the Recovery Story
Ethereum has shown that it can regain momentum after big drops, even when people were feeling very negative about it. Lee pointed to the 64% drop between January and March of last year as a major example. Even though there was a lot of selling, the asset did eventually come back.
He said that the current situation is similar to those past ones, which means that another quick change could happen. Traders often base their expectations on what has happened in the past when things are uncertain. Patterns can change how things are positioned.
Analysts Find Possible Bottom Around $1,890
Based on structural chart signals, market technician Tom DeMark thought that about $1,890 could be the lowest price. He thinks the level might be tested twice in a pattern called an “undercut.” This pattern sometimes comes before long-lasting reversals.
Lee called the setup a “perfected bottom,” which means that confirmation could bring back buying interest. Technical validation often makes people feel better about the market. Traders usually act quickly.
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Price Decline Highlights Recent Volatility
Ethereum recently dropped to around $1,760, which is close to last year’s low of just over $1,400, before leveling off. The asset had a hard time staying above $2,000 and traded close to $1,970 after dropping about 37% in 30 days. Volatility is still high.
These quick changes show how sensitive the cryptocurrency market is to macroeconomic sentiment and liquidity conditions. During long downturns, investors usually reevaluate risk. Caution remains widespread.
Lee Tells Investors to Look for Opportunities
Lee told investors not to give up when the market was weak, but to look for new entry points that the correction had made. He said that the current situation is similar to what happened in the fall of 2018, the fall of 2022, and April of 2025. In the end, each period paid off for the patient people who took part.
People who have already seen their value drop may get more out of accumulation strategies than reactive selling decisions. Strategic positioning frequently determines long-term results. Discipline is important.
Record Staking Signals Strong Long-Term Confidence
ValidatorQueue’s data shows that the wait time for staking entries has reached a record 71 days as more people joined. There are about 4 million Ethereum in the validator queue right now, waiting to be activated. Demand seems strong.
The percentage of staked supply went up to about 30.3%, which means that about 36.7 million Ethereum were locked up in the network. These kinds of commitments show that investors are still confident, even though prices are going down. Conviction stays strong.
Supply Problems Could Help Prices in the Future
Milk Road analysts called the trend a huge supply restriction, pointing out that almost a third of Ethereum is now illiquid. Tokens that earn about 2.83% in annual percentage rewards are no longer available for trading. Scarcity dynamics are important.
During the downturn, investors are said to be locking up about $74 billion, which shows that they would rather hold on to their investments for a long time than speculate in the short term. When demand comes back, less supply can make rebounds stronger. The structure of the market makes recovery more likely.
