Ethereum’s decline has pulled the token from $4,800 to the high $2,000s, but Tom Lee believes the final stretch of selling may be close. The Fundstrat founder and BitMine Immersion (BMNR) chairman said this week that $2,500 looks like the exhaustion point for ETH sellers, citing signals from strategist Tom DeMark. Lee argues that the breakdown is less about collapsing fundamentals and more about one large, constrained seller who is “bleeding or having to sell reflexively as price falls.”
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Lee told CoinFund president Chris Perkins that such forced selling often ends abruptly. He called $2,500 the level that would “create what he calls a buy setup,” putting ETH in position for a powerful snap-back rally. Ethereum continues to underperform the S&P 500 (SPX), which rallied for nearly three weeks after ETH peaked. Lee said part of the divergence stems from the October 10 crypto crash, which triggered automatic deleveraging and pushed market makers out of position.
Lee Targets a Structural Bottom at $2,500
Lee believes the recent drop has been shaped by engineered liquidations rather than sentiment-driven selling. He said DeMark’s read of the charts indicates a systematic unwind from a player “that is capital constrained.” Those forced flows, he added, are often the last to clear before a trend turns.
Reaching $2,500, in Lee’s view, would complete the process. “It would be ideal for us to actually bleed to that level,” he said, arguing that the market would then reset into a healthier structure. He framed the decline as painful but ultimately productive for building a durable bottom for 2026.
Lee Projects a Massive Rally Once Selling Ends
While the near-term picture includes “minor” downside, Lee’s longer-term view remains firmly bullish. He said Ethereum is positioned for a surge to between $7,000 and $9,000 by the end of January, calling it a typical recovery move during fourth-quarter crypto cycles.
Lee has repeatedly pointed to the tokenization of traditional assets as the core driver of what he calls an Ethereum “supercycle.” He believes that once selling pressure clears, institutional capital will accelerate adoption and push ETH into a new phase of growth.
BitMine Advances Its Own Ethereum Bet
Lee’s comments come as BitMine expands its Ethereum footprint. The company now owns about 3 percent of the total ETH supply and plans to launch its MAVEN institutional staking network in the first quarter of 2026. He described the platform as “OFAC-friendly, US Treasury-friendly, Wall Street-friendly,” designed to give large institutions compliant staking access.
BitMine also disclosed a $20 million investment in Orbs, the token aligned with WorldCoin. Lee defended the project’s privacy framework, saying it offers a “cryptographic hash of your iris” without storing biometric information. BitMine recently declared a one-cent annual dividend, which Lee noted makes it “the only company that’s over $9 billion of market cap or even $5 billion that’s paying a dividend” among major crypto stocks.
Key Takeaway
Ethereum may still slip to $2,500, but Tom Lee believes that level would clear out the last forced sellers and set up a strong rebound. If that happens, he expects ETH to snap back quickly, with a possible rally toward $7,000 to $9,000 early next year.
At the time of writing, Ethereum is sitting at $3,020.99.
