Key Takeaways
- Tom Lee suggests Ethereum sellers may exhaust at the $2,500 level based on Tom DeMark’s analysis.
- Ethereum’s “minor” downside may precede a massive rally to $7,000–$9,000 by the end of January, according to Lee.
Tom Lee sees a potential buy setup if Ethereum slides to $2,500. The founder of Fundstrat and chairman of BitMine Immersion, which now owns 3% of the total ETH supply, believes that level would represent a healthy market bottom, citing analysis from strategic advisor Tom DeMark.
Ethereum has declined from $4,800 to around $2,800, underperforming the S&P 500, which continued rising for 20 days after Ethereum’s peak. Lee attributed the divergence partly to the October 10 market crash in crypto that caused automatic deleveraging and caught market makers off guard.
BitMine recently announced a staking network called MAVEN, which will launch with three to four unnamed partners to provide what Lee described as an “OFAC-friendly, US Treasury-friendly, Wall Street-friendly” solution.
The firm also made a $20 million investment in Orbs, the token associated with WorldCoin, an ERC-20 project that provides proof of human verification through iris scanning. Lee said WorldCoin offers a “cryptographic hash of your iris” without storing biometric information.
Bitmine announced an annual dividend of one cent per share, representing less than 1% of expected earnings.
The stock trades at approximately $1.6 billion per day, making it the 50th most traded stock in the US.
Lee maintains his long-term view that Ethereum will enter what he calls a supercycle, driven by the tokenization of traditional assets.
Source: https://cryptobriefing.com/ethereum-exhaustion-point-tom-lee/
