Fundstrat head of analysis Tom Lee argues Ether’s latest hunch must be seen as “engaging” as its fundamentals stay sturdy, and that it has solely fallen as a result of an absence of leverage and a flight to treasured metals.
The primary quarter of 2026 is shaping as much as be Ether’s ($ETH) third-worst Q1 in historical past, with the asset down 21% to date this yr, in keeping with CoinGlass.
Nevertheless, Lee mentioned the worth drop has come at a time when community on-chain exercise and fundamentals have continued to develop.
Ethereum day by day transactions hit an all-time excessive of two.8 million on Jan. 15, and energetic addresses in 2026 soared to a peak of 1 million per day, he mentioned.
Through the crypto winters of 2018 and 2022, Ethereum transaction exercise and energetic wallets declined, “which is counter to what now we have seen previously 12 months,” mentioned Lee.
“Thus, non-fundamental elements are arguably extra the elements explaining the weak spot in $ETH costs.”
Lee mentioned two elements are retaining Ether costs suppressed. Leverage has not returned to crypto for the reason that Oct. 10 crash, whereas the surge in treasured steel costs has “acted as a ‘vortex’ sucking away threat urge for food from crypto.”
BitMine buys dip after $ETH drops 25% in per week
Lee’s Ethereum treasury agency seems to be betting on a restoration. Prior to now week, BitMine acquired an additional 41,788 $ETH.
“BitMine has been steadily shopping for Ethereum, as we view this pullback as engaging, given the strengthening fundamentals,” he mentioned.
“In our view, the worth of $ETH isn’t reflective of the excessive utility of $ETH and its position as the way forward for finance.”
BitMine now holds 4.28 million $ETH tokens, or 3.55% of the full provide, and is 70% of the best way towards its goal of 5%. Round 2.87 million $ETH has been staked.
Nevertheless, the digital asset treasury neared $7 billion in unrealized losses as Ether costs melted down.
A lot of the worth hunch has come over the previous week alone, with $ETH tanking greater than 25% from round $3,000 to a bear market low of $2,200 on Monday, earlier than a minor restoration.
$ETH is seeing its third-worst Q1 in historical past. Supply: CoinGlass
