Fundstrat head of research Tom Lee says Ether’s recent decline should be viewed as “attractive,” arguing fundamentals remain strong and the drop reflects a lack of leverage and a shift into precious metals.
Ether (ETH) is on track for its third-worst Q1 on record, down about 21% so far this year, according to CoinGlass. Despite the price fall, Lee notes on-chain activity and network fundamentals have continued to expand. Ethereum daily transactions hit an all-time high of 2.8 million on Jan. 15, and active addresses in 2026 peaked at roughly 1 million per day.
Lee contrasts this with the crypto winters of 2018 and 2022, when transaction activity and active wallets declined — a pattern not seen over the past 12 months. He concludes that non-fundamental factors likely explain ETH’s price weakness.
Two factors, Lee says, have suppressed Ether prices: leverage has not returned to crypto since the Oct. 10 crash, and a rally in precious metals has “acted as a ‘vortex’ sucking away risk appetite from crypto.”
Lee’s Ethereum treasury vehicle, BitMine, appears to be betting on a rebound. Over the past week BitMine bought an additional 41,788 ETH, with Lee calling the pullback “attractive given the strengthening fundamentals.” He adds that current prices do not reflect ETH’s utility and its role in the future of finance.
BitMine now holds 4.28 million ETH, about 3.55% of total supply, and is roughly 70% of the way toward a 5% target. It has staked around 2.87 million ETH. However, the treasury’s paper losses approached $7 billion as Ether prices fell.
Most of the recent slump occurred in the last week, with ETH plunging more than 25% from near $3,000 to a low around $2,200 before a modest recovery.
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