What’s Dragging Ethereum Down? BitMine’s Tom Lee Has an Answer

Ethereum (ETH) has erased all its May beneficial properties, dropping almost 10% previously week. 

The second-largest cryptocurrency hit an intraday low of $2,097 on Binance on Sunday, its lowest degree since April 7. At press time, the asset traded at $2,116.82, down 2.88% over the previous day.

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But what’s behind this droop? BitMine chairman Tom Lee factors to grease.

Oil Becomes Ethereum’s Biggest Headwind

In a put up on X, Lee stated Ethereum’s inverse correlation to grease hit its highest degree on document. He described the transfer in crude because the dominant pressure pressuring ETH in current weeks.

“If one is questioning why Ethereum ETH has been beneath promoting stress: To me, rising oil costs is the largest headwind. ETH inverse correlation to grease is the best ever,” he stated.

Meanwhile, Brent crude traded close to $111 per barrel on Monday, up roughly 16.4% over the previous month. The rally reflects ongoing US-Iran tensions and the closure of the Strait of Hormuz.

However, Lee argued an oil reversal would unlock ETH’s restoration. Despite the current weak spot, the manager referred to as this “short-term tactical noise.” He talked about that the structural drivers behind ETH stay firmly in place.

The Fundstrat co-founder highlighted tokenization and agentic AI as the larger forces shaping Ethereum’s trajectory via 2026.

These elements have featured in his prior ETH forecasts. Earlier this month, he projected that ETH may attain $9,000 to $12,000 by year-end.

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