Fundstrat's Tom Lee told a conference in Hong Kong on Wednesday that Ethereum (ETH) has fallen more than 50% eight times since 2018 and rebounded sharply every time, a pattern he said points to another rapid recovery from its current slump below $2,000.
What Happened: Lee Predicts V-Shaped Rebound
Lee said each of those eight drawdowns produced what he called a V-shaped bottom, with Ethereum recovering at roughly the same speed as its decline. He pointed to last year's 64% drop between January and March as the most recent example.
"Nothing has changed," Lee said. "Ether will see another V-shaped bottom."
He compared the current downturn to previous troughs in late 2018, late 2022 and Apr. 2025, arguing investors should focus on opportunity rather than capitulation. Market analyst Tom DeMark of BitMine separately identified $1,890 as a potential downside target, describing a scenario in which the level is briefly tested twice — a formation Lee called a "perfected bottom."
Ethereum was trading near $1,970 at the time of writing, after falling roughly 37% over the past 30 days. Prices on Coinbase touched about $1,760 on Feb. 6, just above the 2025 low near $1,400, according to TradingView.
Also Read: XRP Drops 33% But Nine-Year Trendline Holds Strong
Why It Matters: Record Staking Signals Conviction
On-chain data suggests long-term holders are not retreating. The wait time to stake Ethereum has climbed to a record 71 days, with roughly 4 million ETH in the validator entry queue, according to ValidatorQueue.
The share of Ethereum supply staked has also hit an all-time high of 30.3%, or about 36.7 million ETH. Crypto analyst Milk Road described the trend as "a massive supply restriction," noting that roughly one-third of Ethereum's supply is now illiquid and earning around 2.83% APR.
"When people lock up $74 billion during a price dip, they're not speculating," Milk Road said. "They're settling in."
Read Next: Ethereum Loses $2,000 Level Amid Bearish Momentum
