Fundstrat head of analysis Tom Lee argues Ether’s latest hunch ought to be seen as “engaging” as its fundamentals stay robust, and that it has solely fallen attributable to an absence of leverage and a flight to valuable metals.
The primary quarter of 2026 is shaping as much as be Ether’s (ETH) third-worst Q1 in historical past, with the asset down 21% up to now this yr, according to CoinGlass.
Nonetheless, Lee said the worth drop has come at a time when community on-chain exercise and fundamentals have continued to develop.
Ethereum each day transactions hit an all-time high of roughly 2.8 million on Jan. 15, in keeping with Glassnode knowledge cited by Lee, whereas energetic addresses peaked at round 1 million per day in 2026.
Throughout the crypto winters of 2018 and 2022, Ethereum transaction exercise and energetic wallets declined, “which is counter to what we’ve seen up to now 12 months,” stated Lee.
“Thus, non-fundamental elements are arguably extra the elements explaining the weak spot in ETH costs.”
Lee stated two elements are conserving Ether costs suppressed. Leverage has not returned to crypto because the Oct. 10 crash, whereas the surge in valuable metallic costs has “acted as a ‘vortex’ sucking away danger urge for food from crypto,” as capital rotated towards gold and silver throughout latest market volatility.
BitMine buys dip after ETH drops 25% in per week
Lee’s Ethereum treasury agency seems to be betting on a restoration. Prior to now week, BitMine acquired an extra 41,788 ETH.
“BitMine has been steadily shopping for Ethereum, as we view this pullback as engaging, given the strengthening fundamentals,” he stated.
“In our view, the worth of ETH will not be reflective of the excessive utility of ETH and its function as the way forward for finance.”
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BitMine now holds 4.28 million ETH, or 3.55% of the overall provide, and is 70% of the best way towards its 5% goal. It has staked round 2.87 million ETH.
Nonetheless, the digital asset treasury neared $7 billion in unrealized losses as Ether costs melted down.
Many of the worth hunch has come over the previous week alone, with ETH falling greater than 25% from round $3,000 to a bear market low of $2,200 on Monday, earlier than a minor restoration.
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