Fundstrat co-founder Tom Lee says Ethereum is nearing a cyclical low, arguing that on-chain fundamentals and relative valuation versus Bitcoin indicate that ETH is \u201cpretty close to bottoming this week.\u201d<\/p>\n
\u201cPersonally, I think that we\u2019re pretty close to bottoming this week,\u201d Lee told<\/a> CNBC, linking the current drawdown to a broader crypto correction that began after a sharp liquidation event on October 10. Despite that shock, he insisted that Ethereum\u2019s core investment story<\/a> remains intact.<\/p>\n For Lee, that story centers on Ethereum as neutral infrastructure for tokenization and stablecoins, increasingly relevant as Wall Street intensifies its on-chain ambitions. \u201cThere are stablecoin creations. Larry Fink and BlackRock<\/a> and Wall Street want to tokenize assets, bring stocks, bonds, real estate onto the blockchain. And they have to find a neutral 100% uptime blockchain. That\u2019s Ethereum. And that\u2019s the fundamental story,\u201d he said.<\/p>\n Lee framed crypto\u2019s extreme volatility as structurally tied to how the market values long-term innovation rather than as a sign of fundamental weakness. \u201cThe price, of course, for Ethereum will fluctuate because crypto is hyper volatile. In fact, it\u2019s kind of a\u2026 it\u2019s sort of a feature of the blockchain itself,\u201d he noted. \u201cCrypto suffered from that liquidation event on October 10th<\/a>, but because the fundamental story is intact and crypto discounts the future, that\u2019s why it\u2019s volatile, but it still looks pretty attractive here.\u201d<\/p>\n He placed the current move in the context of a broader risk-off environment and a continuing correction across digital assets. According to Lee, macro data remains a crucial driver of crypto cycles, particularly for Bitcoin. \u201cThe most correlated factor to Bitcoin prices when you see it\u2026 at a peak actually is the ISM<\/a>,\u201d he said, referring to US activity surveys. \u201cSo I think we\u2019re still in a correction phase of crypto.\u201d<\/p>\n Asked specifically what underpins his bullish view on Ethereum now, Lee pointed to two structural \u201cfloor\u201d mechanisms.<\/p>\n First, he cited the value of assets locked on the Ethereum blockchain. \u201cEthereum kind of has several ways that it establishes a floor. One is the value of all the assets locked onto the blockchain, and that number is growing,\u201d he said. \u201cHistorically, Ethereum bottoms when that ratio is about 50%. So I\u2019d say we\u2019re pretty close to that level. That\u2019s why I think Ethereum is probably bottoming this week.\u201d<\/p>\n Second, he highlighted Ethereum\u2019s valuation relative to Bitcoin, using both price and network value. \u201cThe other way to look at Ethereum is really its price ratio or even its network value ratio to Bitcoin. It currently sits at 0.032,\u201d Lee said. \u201cThe long-term average, like the eight-year average, if we were just to trade to that eight-year average, would put Ethereum at around $12,000<\/a>.\u201d<\/p>\n On that basis, Lee characterized Ethereum as undervalued versus its historical relationship with Bitcoin. \u201cSo I think Ethereum is undervalued because number one, the story is gaining relative to Bitcoin this year. But two, we\u2019re getting this sort of intrinsic floor because of the value that the assets locked onto the Ethereum blockchain,\u201d he argued.<\/p>\n Summarizing Lee\u2019s stance, the CNBC host concluded: \u201cTom Lee saying that Ethereum is bottoming this week.\u201d Lee did not offer a specific price target or an exact day, but his message was clear: in his view, Ethereum is close to completing its correction as on-chain value and relative valuation metrics converge toward levels that have historically marked major bottoms.<\/p>\n At press time, ETH traded at $3,018.<\/p>","protected":false},"excerpt":{"rendered":" Fundstrat co-founder Tom Lee says Ethereum is nearing a cyclical low, arguing that on-chain fundamentals and relative valuation versus Bitcoin indicate that ETH is \u201cpretty close to bottoming this week.\u201d \u201cPersonally, I think that we\u2019re pretty close to bottoming this week,\u201d Lee told CNBC, linking the current drawdown to a broader crypto correction that began […]<\/p>\n","protected":false},"author":0,"featured_media":114099,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-114098","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/114098"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=114098"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/114098\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/114099"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=114098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=114098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=114098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Will Ethereum Bottom This Week?<\/h2>\n