Fundstrat’s head of research, Tom Lee, said he expects Ether to rebound quickly from recent declines, arguing that the asset has seen eight such recoveries since 2018.
“Many people are frustrated, but it’s important to remember that Ethereum has fallen over 50% eight times since 2018” – Lee he said at a conference in Hong Kong on Wednesday.
Last year, Ethereum fell 64% from January to March, he added.
“But eight times out of eight Ethereum had a V-shaped bottom. So 100% of the time it recovered at almost the same speed it went down.”
He argued that nothing had changed and that Ether (ETH) would see another V-shaped bottom.
ETH is near the bottom, says Lee
BitMine market analyst Tom DeMark identified the $1,890 price level as a potential low, but said it would happen twice, resulting in an “undercut.” Lee stated that it would be a “perfect bottom”, adding:
“We think Ethereum is really close to the bottom and I think it will be similar to Fall 2018, Fall 2022 and April 2025. You don’t really have to worry about the bottom. If you’ve already seen a dip, you should be thinking about opportunities here instead of selling.”
Related: Analysts are debating whether Ether has capitulated or needs to continue to decline
Ether prices on Coinbase fell to $1,760 on February 6, just below the 2025 low of just over $1,400. According to to TradingView.
The asset failed to stay above $2,000, falling to $1,970 at the time of writing after a 37% crash in the last 30 days.
Entry into ether staking is at an all-time high
Despite the asset’s penniless performance this year, data shows that there is still sturdy demand for Ether staking.
The current wait time to stake Ether is the highest ever at 71 days, with a record 4 million ETH in the validator’s input queue, According to to the Validator queue. The percentage of supply is also at a record high and amounts to 30.3%, or 36.7 million ETH.
The obvious result of this is a “massive reduction in supply”, he said “Milk Road” analyst on Wednesday.
“One-third of all ETH is currently illiquid, with an APY of a modest 2.83%,” they added. “That’s not an attractive profit by cryptocurrency standards. But people are lining up anyway.”
“When people close on $74 billion during a downturn, they’re not speculating. They’re just settling.”
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