Tom Lee Predicts Ethereum's Continued Pattern of Rapid Recoveries

Fundstrat's Tom Lee has argued that despite recent volatility and decline in Ethereum's value, the cryptocurrency has a consistent history of sharp drops followed by rapid recoveries. Since 2018, Ethereum has experienced eight instances of more than 50% drawdowns, but has always managed to recover in a V-shaped pattern. Lee suggests that the current decline does not change Ethereum's outlook and predicts another V-shaped recovery. He also cites market analyst Tom DeMark's view that Ethereum may need to revisit the $1,890 level to form a "perfected bottom." Meanwhile, ETH-focused treasury firm BitMine has bought approximately $83 million worth of ETH, even as the market continues to show weakness. In contrast, trading firm Trend Research has fully exited its Ethereum positions, despite maintaining a bullish long-term outlook.