“All signals are flashing—Ethereum is nearing a historic bottom. When assets locked hit 50% of market value, ETH doesn’t just stabilize, it rebounds hard,” Lee noted, calling the current setup “one of the strongest bullish triggers” for Ethereum.
According to Tom Lee of Fundstrat, Ethereum may be getting closer to a significant market turning point. He cautioned that important network data indicate the second-largest cryptocurrency in the world is getting close to its “intrinsic floor.”
According to Lee, who spoke with CNBC, Ethereum usually reaches its lowest point when the value of assets stored on its blockchain approaches 50% of its market value.
The declining Ethereum-to-Bitcoin pricing ratio, which is currently close to 0.032 and well below its eight-year average, was another argument Lee made.
He added significant weight to his positive stance by stating that a return to the long-term trendline would indicate an ETH price closer to $12,000.
Ethereum is still down more than 37% from its peak, even though it is currently trading close to $3,100 following a slight 1.2% rebound. However, Lee thinks that after the liquidation event on October 10, there is more market stress, which is reflected in the present consolidation.
He speculated that the continuous volatility might be caused by pressure on one or more big market makers’ balance sheets.
“We’re getting this sort of natural floor because of the value of the assets locked onto the Ethereum blockchain,” Lee stated, pointing out that institutional tokenisation, expanding blockchain adoption, and increased stablecoin activity are the main factors driving future development.
His remarks coincide with BitMine Immersion Technologies’ disclosure of treasury holdings of 3.56 million ETH, 192 BTC, and $607 million in cash, which supports the company’s long-term belief in the worth of Ethereum.
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