Ethereum has been highly volatile since October, with increased sell-offs over the past month. Tom Lee, the head of research at Fundstrat, points out that the concerns surrounding Ethereum’s declining performance ignore its historical trend of sharp declines followed by rapid recoveries. He believes that the market may be approaching a point of bottoming out.

Is Ethereum Nearing Its Bottom?

During a recent conference in Hong Kong, Lee noted that since 2018, Ethereum has experienced declines of over 50% across eight separate instances, including a significant 64% drop between January and March last year. In all these cases, Ethereum formed a “V-shaped bottom” and rebounded at a pace similar to its decline, giving him confidence that the recent market dip does not fundamentally alter Ethereum’s prospects.

Lee referred to comments from Tom DeMark of BitMine, who suggested that Ethereum might need to touch the $1,890 mark to establish a solid bottom. He pointed out that BitMine’s analysis indicates Ethereum might be nearing this point, drawing comparisons with previous downturns in late 2018, late 2022, and April 2025.

While he did not specify a precise low point, Lee emphasized the importance of the decline’s severity and advised investors to think in terms of opportunities rather than panic selling.

“If you have already seen a decline, you should be thinking about opportunities here instead of selling.”
“Eğer zaten bir düşüş yaşadıysanız, burada satmak yerine fırsatları düşünmelisiniz.”

BitMine’s Purchases

Lee’s insights come as Ether prices dipped to $1,760 on February 6, nearing the 2025 low of around $1,400. Ethereum has struggled to rebound above the $2,000 threshold after falling over 36% in the last month. Amid this continued market weakness, BitMine, which is chaired by Lee, purchased approximately $83 million worth of Ethereum this week. This included two substantial purchases of 20,000 ETH each through institutional platforms BitGo and FalconX, all while their existing assets remain significantly lower than their initial values.

Ongoing Portfolio Adjustments

The broader market decline has prompted significant portfolio changes. For instance, Trend Research, a trading firm led by Liquid Capital’s Jack Yi, has fully exited its Ethereum positions, having closed what was once the largest ETH long in Asia. Despite being bullish in the long term, the firm realized losses of about $869 million after unwinding its positions, which had reached roughly $2.1 billion in leveraged ETH exposure.