Tom Lee Says Ethereum Has Never Failed This Pattern and Expects Another V-Shaped Recovery

Ethereum has remained unstable since October, whereas the sell-off intensified during the last month. Fundstrat head of analysis Tom Lee stated investor frustration across the main altcoin’s latest weak spot overlooks a protracted and constant historic sample of sharp declines adopted by equally speedy recoveries.

In reality, he believes that the underside is close to.

Ethereum Near the Bottom?

While speaking at a convention in Hong Kong this week, Lee stated that since 2018, Ethereum has skilled drops of greater than 50% on eight totally different drawdowns, together with a steep 64% fall between January and March final yr. In each a type of cases, ETH shaped a “V-shaped backside,” recovering absolutely and doing so at roughly the identical tempo as its decline. From his perspective, this observe report signifies that the present drawdown doesn’t symbolize any change in Ethereum’s outlook, and he expects one other V-shaped backside to emerge following the most recent sell-off.

Lee additionally cited BitMine market analyst Tom DeMark’s evaluation, who believes Ethereum might have to revisit the $1,890 stage to kind a “perfected backside.” Lee added that, based mostly on BitMine’s evaluation, ETH seems to be very near such a backside, as he drew parallels to earlier downturns in late 2018, late 2022, and April 2025.

While Lee kept away from pinpointing the precise low, he argued that the magnitude of the decline itself is extra necessary, and that buyers ought to be pondering by way of alternative relatively than offloading their stash.

“If you will have already seen a decline, you have to be excited about alternatives right here as an alternative of promoting.”

BitMine Is Buying

His feedback got here as Ether costs fell to $1,760 on February 6, because it approached the 2025 low of virtually $1,400. So far, ETH has continued to wrestle to reclaim the $2,000 stage after a greater than 36% drop over the previous 30 days. As weak spot available in the market continues, BitMine, the ETH-focused treasury agency chaired by Lee, purchased roughly $83 million price of ETH this week.

It executed two massive buys of 20,000 ETH every by way of institutional platforms BitGo and FalconX, whilst its current holdings remained considerably underwater.

Meanwhile, the drawdown has already led to large-scale portfolio changes. For occasion, Trend Research, a buying and selling agency led by Liquid Capital founder Jack Yi, absolutely exited its Ethereum positions and closed what was as soon as Asia’s largest ETH lengthy. The agency had constructed roughly $2.1 billion in leveraged ETH publicity however finally realized losses of about $869 million after unwinding its positions regardless of Yi reiterating a bullish long-term outlook simply days earlier.

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