Fundstrat’s head of research, Tom Lee, said he expects Ether to stage a swift rebound following its recent downturn, noting that the cryptocurrency has undergone multiple similar recoveries in the past.
“Many people are frustrated, but it’s important to remember that since 2018, Ethereum has dropped more than 50% eight different times,” Lee said at a conference in Hong Kong on Wednesday.
He added that Ethereum fell 64% between January and March last year before recovering, underscoring what he described as a recurring pattern of sharp declines followed by strong rebounds.
“But eight out of eight times, Ethereum has had a V-shaped bottom. So it has recovered 100% of the time within almost the same speed that it fell.”
He argued that nothing has changed and that Ether (ETH) will see another V-shaped bottom.
Ether Nearing a Bottom, Lee Says
BitMine market analyst Tom DeMark has identified the $1,890 level as a potential bottom for Ether, though he expects the price to test that level twice in what he described as an “undercut” formation.
Lee said such a move would signal a “perfected bottom,” suggesting that a double test of the support level could set the stage for a stronger rebound.
“We think Ethereum is really close to the bottom, and I think it’s just like the fall of 2018, fall of 2022, and April 2025. You don’t really have to worry about the bottom. If you’ve already seen a decline, you should be thinking about opportunities here instead of selling.”
Ether fell to $1,760 on Coinbase on Feb. 6, narrowly avoiding a drop below its 2025 low of just over $1,400, according to TradingView data.
The cryptocurrency has struggled to reclaim the $2,000 level and was trading at around $1,970 at the time of writing, following a 37% decline over the past 30 days.
Ether Staking Queue Hits Record High
Despite Ether’s weak price performance this year, demand for staking remains strong.
The waiting period to stake ETH has climbed to a record 71 days, with approximately 4 million ETH currently in the validator entry queue, according to ValidatorQueue. Meanwhile, the share of total supply staked has reached an all-time high of 30.3%, or roughly 36.7 million ETH.
Analyst “Milk Road” said Wednesday that the surge in staking is creating a “massive supply restriction.”
“One-third of all ETH is now illiquid, earning a modest 2.83% APR,” the analyst noted. “That’s not a particularly attractive yield by crypto standards — yet demand continues to grow.”
“When people lock up $74 billion during a price dip, they’re not speculating. They’re settling in.”
