Lee argues that the asset has historically staged V-shaped recoveries after major drawdowns. While market technician Tom DeMark flagged $1,890 as a potential bottom level, on-chain data shows strong long-term conviction, with a record 4 million ETH waiting to stake and more than 30% of total supply now locked. Ethereum Nearing Key Bottom Fundstrat’s head of research, Tom Lee, believes Ethereum is nearing a bottom and is poised for another sharp recovery, despite the mounting frustration among investors after a steep recent sell-off. At a conference in Hong Kong, Lee pointed out that since 2018, Ethereum endured more than eight drawdowns exceeding 50%, and each time the asset ultimately staged what he described as a “V-shaped” rebound. According to Lee, the pattern has been remarkably consistent. He explained that Ethereum dropped 64% between January and March last year alone, yet recovered at nearly the same pace as the decline. Historically, he said, the asset bounced back 100% of the time after similar collapses. This suggests that the current downturn may be another instance of a familiar cycle rather than a structural breakdown. Market technician Tom DeMark added a more specific price framework, and identified the $1,890 level as a potential bottom. However, he suggested the market could briefly undercut that level twice before forming what Lee described as a “perfected bottom.” Recent price action shows Ethereum briefly plunging to around $1,760 on Feb. 6, narrowly avoiding its 2025 low of just above $1,400. At press time, Ethereum was trading near $1,970 after suffering a 37% decline over the past 30 days and repeatedly failing to reclaim the $2,000 threshold. ETH’s price action over the past 30 days (Source: CoinCodex) Despite the sharp correction, on-chain data indicates that long-term conviction among certain investors is still intact. The queue to stake ETH reached a record high, with approximately 4 million ETH waiting to enter validator status. The wait time to stake has stretched to 71 days, which is the longest on record, according to ValidatorQueue . Meanwhile, the share of total Ethereum supply that is staked has climbed to an all-time high of 30.3%, equivalent to roughly 36.7 million ETH. Analysts argue that this surge in staking activity effectively tightens liquid supply. One-third of all Ethereum is now locked and earning an annual percentage rate of around 2.83%. Yet demand to stake is robust even as prices fall. Commentators have described the situation as a supply restriction, as billions of dollars’ worth of ETH are being committed during a downturn rather than withdrawn.
