Tom Lee says Ether is set for another V-shaped recovery after the recent selloff
Tom Lee from Fundstrat said Ether has a long track record of snapping back after deep drawdowns and argued the market is again close to a bottom. He pointed to a potential downside level near $1,890, while separate data shows staking demand rising even as ETH struggles to hold $2,000.
Ethereum’s slide into early February has been messy, even by crypto standards. Risk appetite has been thin, and ETH has moved almost in lockstep with broader deleveraging across the market. A recent market breakdown framed the latest leg down as a renewed risk-off move that pushed Ether below $2,000, with ETF withdrawals and negative derivatives positioning keeping pressure on both majors.
Against that backdrop, Fundstrat head of research Tom Lee told attendees at a Hong Kong conference that the market is repeating a familiar pattern. Lee said Ethereum has fallen more than 50% from a recent high eight times since 2018 and recovered with what he described as a “V-shaped bottom” each time. He also pointed to last year’s 64% drop from January to March as an example of how quickly sentiment can flip once selling pressure fades.
Lee framed the current drawdown as closer to a bottoming process than the start of a new collapse. He cited BitMine analyst Tom DeMark’s view that $1,890 could act as a potential low, with an “undercut” scenario that taps the level twice before stabilizing. Market data showed ETH touched $1,760 on Coinbase on Feb. 6 and was trading around $1,970 at publication time after a 37% slide over the prior 30 days.
One piece of data Lee highlighted sits outside price action: staking behavior. ValidatorQueue data showed the entry wait to stake Ether at a record 71 days, with about 4 million ETH in the validator entry queue and roughly 30.3% of supply staked.
The idea is straightforward. If more ETH is being locked up for staking during a drawdown, that reduces liquid supply at the margin. A separate BitMine note framed the company’s large ETH position as part of an accumulation strategy that treats volatility as a feature, not a bug.
Lee’s “V-shape” call does not guarantee timing, but it clarifies the bet: if the market is in the late stage of capitulation, the risk is less about catching the exact bottom and more about missing the rebound once flows and positioning turn.
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