**Fundstrat**'s **Tom Lee** stated at a conference held in Hong Kong on Wednesday that Ethereum (ETH) has fallen more than 50% eight times since 2018, and each time it has rebounded strongly, suggesting that this pattern indicates another quick recovery from the current stagnation below $2,000.
What happened: Lee predicts a V-shaped rebound
Lee said that the past eight downturns all created what he calls a 'V-shaped bottom' pattern, and that Ethereum recovered at nearly the same pace as its decline. He cited the most recent example of the period from January to March last year, when it plummeted by 64%.
"Nothing has changed," Lee said. "Ethereum will see another V-shaped bottom."
He compared this downturn to the lows of late 2018, late 2022, and April 2025, arguing that investors should focus on opportunities rather than panic selling. Market analyst **Tom DeMark** from **BitMine** separately suggested a downside target of $1,890, explaining a scenario where this price range is tested twice in a short time, which Lee referred to as a "perfected bottom."
At the time of writing, Ethereum was trading around $1,970 and had fallen about 37% over the past 30 days. Data from **Coinbase** shows that on February 6, the price dropped to around $1,760, finding support just above the 2025 low of about $1,400, according to TradingView data.
See also: XRP Drops 33% But Nine-Year Trendline Holds Strong
Why it matters: The all-time high staking shows confidence
On-chain data suggests that long-term holders are not backing down. According to the ValidatorQueue, the waiting time to stake Ethereum has reached an all-time high of 71 days, with approximately 4 million ETH piled up in the validator entrance queue.
The proportion of staked Ethereum supply has also reached an all-time high of 30.3%, which corresponds to approximately 36.7 million ETH. Cryptocurrency analyst **Milk Road** described this trend as a "massive supply restriction," noting that about one-third of Ethereum's supply is currently illiquid, generating an annual percentage rate (APR) of around 2.83%.
"Locking up $74 billion during a downturn is more about settling in than speculation," said Milk Road.
Next read: Ethereum Loses $2,000 Level Amid Bearish Momentum
