Is Ethereum Starting Its Own Bitcoin-Style Supercycle? Tom Lee Weighs In

Ethereum could also be getting into an analogous explosive long-term development cycle to that of Bitcoin years in the past Tom Leethe chief chairman of BitMine. Lee says he is seeing the primary indicators of what he calls an enormous “supercycle,” one thing he beforehand witnessed when he really helpful Bitcoin in 2017 for simply $1,000. Though Bitcoin has skilled a number of crashes of as much as 75% over time, it nonetheless delivered 100x returns from the primary name. Lee now believes Ethereum is gearing up for the same journey.

Why Lee thinks Ethereum is simply getting began

In early 2025, Ethereum lagged behind Bitcoin, with BTC rising to new highs above $126,000, whereas ETH peaked at $4,946 and shortly misplaced momentum. Each have now cooled down. Bitcoin is down about 25% from its peak, and Ethereum is down greater than 35%.

In line with Lee, this type of relapse is totally regular in a serious cycle. He does not see the dips as weak point, however as indicators that the market has not but totally priced in what’s to come back. Volatility, he says, is just doubt, and doubt usually hides the best alternatives. Simply as early Bitcoin believers needed to endure large declines through the 100x surge, Lee thinks Ethereum buyers are presently dealing with an analogous emotional check.

Lengthy-term Ethereum holders are approaching breakeven

On-chain analyst Burak Kesmeci from CryptoQuant added extra perspective by declaring the long-term holders of Ethereum. With ETH buying and selling round $3,150, he says the token is barely about $200 above the common worth the place long-term accumulators bought their cash. These are the wallets which were steadily accumulating ETH all year long.

Ethereum has dipped under this stage solely as soon as this yr, in April, when international tariffs beneath President Trump briefly shook the market. Historical past reveals that when ETH drops to its long-term value stage, it not often stays there for lengthy. That zone tends to be one of many strongest shopping for alternatives for affected person buyers.

The buildup is rising quickly

Kesmeci notes that long-term ETH holdings have risen from 10 million earlier this yr to 27 million right this moment. This sharp improve reveals the rising confidence of devoted holders. Even with ETH just lately reaching $3,023 earlier than recovering to round $3,185, analysts consider the broader pattern nonetheless factors to power constructing beneath the floor.

ETH market situation

Ethereum remains to be caught in a good downtrend and is being rejected at each decrease excessive, however the market is lastly displaying indicators of the promoting strain easing. On the each day chart, ETH stays throughout the sturdy demand zone of $3K-$3.1K, with a optimistic RSI divergence indicating that bearish momentum is fading. Nonetheless, the pattern stays weak except consumers push the value again above $3.45K-$3.55K and reclaim the 200-day MA. On decrease time frames, ETH is being squeezed right into a falling wedge, blocking any breakout try at $3.55K and $3.8K.

The worth is now hovering close to the underside fringe of the wedge, the place lengthy wicks present consumers getting into. A transfer above $3.35K may spark a quick bounce in the direction of $3.55K, however failure to take action leaves the door open for an additional retest of $3K, or perhaps a fast dip under, earlier than an actual restoration begins.

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