Fundstrat head of research Tom Lee said he expects Ether to stage another V-shaped recovery following its recent 37% slide, arguing the asset has rebounded from similar drawdowns eight times since 2018.
“A lot of people are frustrated, but keep in mind that Ethereum, since 2018, has fallen more than 50% eight times,”
Lee said at a conference in Hong Kong, noting that:
“Eight out of eight times, Ethereum has had a V-shaped bottom.”
Lee added that investors should view the current decline as an opportunity rather than a signal to sell, saying:
“We think Ethereum is really close to the bottom.”
Ether fell to $1,760 on Feb. 6 and was trading around $1,970 at the time of writing, having struggled to hold above the $2,000 level amid broader market weakness.
Market analyst Tom DeMark identified $1,890 as a potential “perfected bottom” if tested twice in an undercut pattern, and following the session the Ether price was unchanged at $1,970.
Despite price pressure, staking demand remains strong, with roughly 4 million ETH in the validator entry queue and a record 30.3% of total supply, or 36.7 million ETH, currently staked.
Analyst “Milk Road” said the growing share of illiquid supply represents a significant constraint, noting that when billions of dollars’ worth of Ether are locked up during a downturn, it signals long-term conviction rather than short-term speculation.
At the time of reporting, Ethereum price was $1,970.34.