Why does Tom Lee see the drop in Ethereum as a golden opportunity?
Ethereum has just suffered a drastic drop of 40%, reminiscent of the sharp corrections of 2025. While some investors panic, Tom Lee sees it as a unique buying opportunity. Amid macroeconomic uncertainties and technological potential, this drop is dividing the cryptocurrency market.
In brief
The 40% drop in Ethereum in 2026 is explained by macroeconomic uncertainties, negative flows in ETFs, and a correlation with Bitcoin.
Tom Lee compares this drop to that of 2025, followed by a +300% rebound, and highlights the long-term potential of the Ethereum network.
Investment strategies vary: spot buying, DCA, or options, but risks persist in the event of economic deterioration.
Crypto: Why is Ethereum down 40%?
Ethereum has dropped 40%, a decline attributed to several factors. Firstly, the persistent macroeconomic uncertainty, with tensions surrounding Federal Reserve decisions and inflation. Secondly, Ethereum is experiencing a correlation with Bitcoin, whose drop has triggered a wave of selling across the cryptocurrency sector.
The BitBull analyst described these outflows as a capitulation signal, given the intensity of the selling panic.
Ethereum ETFs have just recorded their largest weekly outflow of capital. This is a capitulation signal, given the intensity of the panic selling.
This pullback coincides with a 10.25% drop in the price of Ethereum during the week. The net buying volume on Binance remained negative this month, demonstrating persistent weakness on the buying side. Additionally, BlackRock had a particularly significant impact, selling nearly 200 million ETH in a single session.
As a result, investor disinterest in cryptocurrencies in Ethereum has accelerated.
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