In a bold statement that has caught the attention of the crypto community, Tom Lee, the executive chair of BitMine Immersion Technologies, has expressed strong confidence in Ethereum’s (ETH) trajectory, suggesting it may soon embark on a growth pattern akin to Bitcoin’s spectacular 100-fold price increase since 2017. Ethereum has faced price volatility recently, having dipped 35% from its all-time high of $4,946 achieved in August 2025, while Bitcoin has similarly dropped 25% from its peak prices observed in October of the same year.
Lee, who was pivotal in introducing Bitcoin to Fundstrat clients when it was priced around $1,000, now sees Ethereum entering a new supercycle. His perspective reflects a broader belief that significant market swings indicate an impending explosive future for ETH, similar to the market behavior seen with Bitcoin in the past.
Despite the current downturn, Lee noted that long-term holders of Ethereum have accumulated a substantial amount of the cryptocurrency, with their balances climbing to 27 million ETH in 2025, from just 10 million at the year’s inception. This long-term accumulation strategy suggests a bullish sentiment among committed investors, an essential factor as the market navigates through challenging fluctuations.
Institutional interest appears robust as well amid the bears, with BitMine reportedly acquiring over $234 million in ETH within the past week. According to Arkham data, the firm purchased more than 67,000 ETH from renowned institutional brokers like Galaxy Digital, FalconX, and Coinbase. This developing trend underscores the confidence some institutions maintain in Ethereum’s long-term potential, challenging the prevailing market skepticism.
Yet, not everyone is convinced of Ethereum’s advantages. Some analysts and market participants have raised questions about its competitive edge compared to faster blockchain platforms like Solana. They argue that despite Ethereum’s advancements, it continues to face performance challenges that may hinder its growth against swifter alternatives. The ongoing debates about Ethereum’s suitability for global financial applications further complicate its narrative, especially when contenders offer similar functionalities.
As of recent trading sessions, Ethereum hovered around $3,150, approximately $200 above the average cost basis for long-term holders, who have largely remained steadfast despite market pressures. Historical patterns indicate that prices do not linger at their cost basis for long, marking entry points as strong accumulation opportunities, reiterated by crypto analyst Burak Kesmeci.
Furthermore, should Ethereum slip below the $2,900 mark, it could pose a significant correlation with the cost basis of long-term accumulators. Historically, such price levels have represented periods of substantial accumulation, a situation that keen investors would closely monitor.
Despite these factors, Ethereum’s recent downturn saw it dip as low as $3,023 before making a brief recovery to trade at approximately $3,185. The implications of continual instability in the market have led Lee to caution that holders of Ethereum may encounter hurdles akin to those faced by Bitcoin during its growth phases.
As we head into 2026, the crypto landscape remains turbulent. Lee and those backing Ethereum’s potential believe that, with patience and strategic accumulation, investors could be well positioned as the supercycle unfolds. The overarching discussions about Ethereum’s future will undoubtedly shape sentiments across the crypto sphere as stakeholders weigh its potential against emerging competitors.
