- Ethereum is under short-term selling pressure as investor confidence is negatively impacted by increased oil prices and macroeconomic uncertainty.
- Tom Lee of Fundstrat is still optimistic about Ethereum’s long-term prospects, but he thinks that the primary cause of ETH’s recent decline is rising crude oil prices.
- According to Lee, agentic AI and tokenization could propel significant Ethereum price growth in 2026.
- Analysts were keeping a careful eye on the $2,100 support level as ETH fell to about $2,116.
Will Ethereum Rebound or Fall Further as Oil Hits $100+? Even though Tom Lee of Fundstrat reaffirmed his long-term positive forecast, Ethereum is under fresh selling pressure.
The most recent decline followed Lee’s statement on X that, despite his recent assertions that the “crypto spring” had already started, Ethereum’s recent downturn had been caused by short-term macro forces, namely rising oil costs.
In a May 18 post on X, Lee contended that macroeconomic reasons, rather than a drop in the asset’s long-term fundamentals, were primarily responsible for Ethereum’s decline.
“To me, rising oil prices are the biggest headwind if one is wondering why Ethereum has been under selling pressure,” Lee stated.
Why Rising Oil Prices Are Dragging Ethereum Lower, According to Tom Lee?
According to Tom Lee, the relationship between Ethereum and oil prices has become extremely negative, achieving what he described as its “highest ever” inverse connection. To put it simply, Ethereum has been declining as oil prices rise.
While crude oil continued to rise over the last six weeks, ETH prices have suffered. Lee, though, thinks this vulnerability is really transient market noise.
According to him, Ethereum’s fundamental advantages are still intact, and it may have a chance to rebound if oil prices decline. Lee claims that tokenization and agentic artificial intelligence remain the two pillars of his optimistic long-term Ethereum thesis.
Lee wrote, “These structural drivers are in place.” “Therefore, we anticipate higher ETH prices throughout 2026.”
Can Ethereum Become The Backbone Of The Digital Economy?
One X user responded to his remarks in reaction to the growing distrust among cryptocurrency traders: “Since the beginning of the war, ETH has been the best performing asset. What happened to that?” “Ethereum has never closed up for three consecutive months in a crypto winter,” Lee stated.
A May close above $2,100 would support what he called a historically bullish setting for the industry as a whole, according to Lee. A hypothetical 5% allocation to Ethereum at the end of 2016 would have transformed a $100,000 portfolio into about $1.7 million today, he claimed, citing long-term portfolio performance data.
Why Tom Lee Believes Ethereum Could Skyrocket To $62,000?
According to Lee, “you’d want to own just a small piece of Ethereum as a source of diversification and as a hedge.” Lee went on to say that if Ethereum is seen as a vital component of the digital economy’s payment system, an even more promising scenario might materialize.
In that scenario, he proposed that the price of Ethereum might increase to $62,000. Additionally, Lee stated that despite continuous volatility, Ethereum’s larger investment thesis is still strong.
“Ethereum has outperformed every other asset class over the last ten years,” he claimed, citing cumulative gains of over 49,000%. Lee continued, “So once more, Ethereum has been a great store of value.”
Lee’s most recent defense of Ethereum follows the failure of one of his previous predictions, which sparked backlash from investors and traders. Lee has previously projected that Ethereum would reach a low of about $2,500 before rising significantly to $9,000 by the beginning of 2026.
Rather, his market calls’ timeliness and dependability were called into question as prices continued to falter under more general market pressure.
Why The $2,100 Level Could Decide Ethereum’s Next Big Move?
In the past, he called the drop from about $4,800 to $2,800 an “engineered liquidation” intended to drive out lesser players.
“Ethereum’s long-term value is unaffected by the crash from $4,800 to $2,800,” Lee stated.
Even said, his bullish predictions have come under more scrutiny due to the short-term prediction’s failure, especially as Ethereum is still well below its peak.
Ethereum underperformed the larger cryptocurrency market, falling 3.25% to $2,116.90 during the past day. As market anxiety grew, investors shifted their funds away from volatile altcoins. While trading volume increased 39% to $13.5 billion, Ethereum’s market share fell below 10%. The $2,100 support level is being keenly monitored by analysts.
Prices may rise to $2,200 if ETH remains above that level. But if Bitcoin stays sluggish, a decline below $2,100 might bring Ethereum closer to the crucial $2,000 mark.
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