Tom Lee Shrugs Off ETH Sell-Off, Says Fundamentals Don’t Match Falling Prices

Ethereum’s (ETH) worth plunged over the weekend, sliding from round $2,900 to close $2,100 as promoting stress intensified. It has since stabilized barely as of Tuesday, however stays down greater than 26% over the previous month.

Despite weakening investor confidence, Fundstrat head of analysis Tom Lee attributed the crypto asset’s weak spot to the absence of leverage and gold’s rally slightly than deteriorating Ethereum fundamentals.

Aggressive Buying Spree

Leading Ethereum treasury agency BitMine has continued to build up ETH throughout the current worth pullback. Lee, who can be its Chairman, described present ranges as “enticing” amidst what he considers as strengthening community fundamentals.

Lee said,

“BitMine has been steadily shopping for Ethereum, as we view this pullback as enticing, given the strengthening fundamentals. In our view, the value of ETH shouldn’t be reflective of the high utility of ETH and its function as the way forward for finance.”

The sharp decline within the crypto asset’s worth over the previous month comes at the same time as Ethereum day by day transactions reached an all-time high of two.5 million and lively addresses climbed to a document 1 million per day in 2026. Lee in contrast this to earlier crypto downturns, when on-chain exercise declined, and stated current worth weak spot seems pushed by non-fundamental components, together with subdued leverage and a surge in treasured metals costs.

His feedback adopted stories estimating that the corporate was sitting on over $6.9 billion in unrealized losses on its Ethereum holdings.

No Pressure To Sell ETH

As of February 2, the corporate reported whole crypto and funding property of $10.7 billion, together with 4,285,125 ETH, 193 Bitcoin, a $200 million stake in Beast Industries associated with MrBeast, a $19 million stake in Eightco Holdings, and $586 million in money.

According to the corporate, its stability sheet contains roughly $10.1 billion in crypto and investments, with its Ethereum holdings producing staking rewards at a Composite Ethereum Staking Rate of two.81%, whereas money earns cash market yields of roughly 3.5% to three.9%.

BitMine reported no excellent debt. Lee stated this construction permits the agency to resist crypto market volatility whereas producing recurring revenue. He additionally added that there isn’t a stress to promote ETH given the absence of debt covenants or associated restrictions. As of February 1st, BitMine had staked 2,897,459 ETH, which is value round $6.7 billion. This is a rise of 888,192 ETH over the previous week and represents a portion of its whole Ethereum holdings.

Staked ETH has risen steadily from 408,627 ETH on the finish of December 2024. BitMine stated that it’s presently working with three staking suppliers because it prepares to launch its industrial MAVAN validator community in 2026. As per Lee’s replace, over the latest week, the corporate acquired 41,788 ETH, persevering with a sample of weekly purchases that has included sizable additions all through January.

The publish Tom Lee Shrugs Off ETH Sell-Off, Says Fundamentals Don’t Match Falling Prices appeared first on CryptoPotato.