TLDR
- Tom Lee believes Ethereum is beginning a supercycle similar to Bitcoin’s 100x price increase since 2017
- Ethereum has dropped 35% from its August all-time high of $4,946 while Bitcoin fell 25% from October peak
- Long-term Ethereum holders have accumulated 27 million ETH, up from 10 million at the start of 2025
- BitMine purchased $234 million worth of ETH over the past week through institutional brokers
- Critics question Ethereum’s competitive advantage over faster blockchain platforms like Solana
Tom Lee, executive chair of BitMine Immersion Technologies, says Ethereum is entering the same growth pattern that produced a 100-fold price increase for Bitcoin. Lee first recommended Bitcoin to Fundstrat clients in 2017 when it traded around $1,000.
Bitcoin has now multiplied 100 times from that initial recommendation despite experiencing multiple price drops. The cryptocurrency endured six declines exceeding 50% and three drops over 75% during this period.
Lee wrote on X that Ethereum is starting this same supercycle path. He said large price swings reflect the market pricing in a massive future for ETH.
Bitcoin is a volatile asset.
We first recommended Bitcoin to Fundstrat clients in 2017 (1%-2% allocation)
– Bitcoin 2017 ~$1,000Since then (past 8.5 years), $BTC:
– 6 declines > -50%
– 3 declines > – 75%2025, Bitcoin 100x from our first recommendation
TAKEAWAY:
To have… pic.twitter.com/xtIRGLdnWM— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) November 16, 2025
Ethereum reached an all-time high of $4,946 in August 2025. Bitcoin continued climbing to peak above $126,000 in October. As of Monday, Bitcoin dropped 25% from its high while Ethereum fell over 35% from its peak.
The executive chair said investors needed to endure difficult market conditions to benefit from Bitcoin’s supercycle. He expects Ethereum holders will face similar challenges.
Long-Term Holder Activity
CryptoQuant contributor Burak Kesmeci reported that Ethereum currently trades around $3,150. This price sits approximately $200 above the average cost basis of long-term accumulators.
These patient holders have only seen ETH drop below their average purchase price once this year. That occurred in April when President Donald Trump implemented global tariffs.
Around 17 million ETH flowed into accumulation addresses throughout 2025. Long-term wallet balances grew to 27 million ETH from 10 million ETH at the year’s start.
Kesmeci stated that if Ethereum falls below $2,900, it would reach the cost basis of long-term holders. He said the price historically doesn’t stay at that level for extended periods. That price point has represented one of the strongest accumulation opportunities.
Institutional Buying Activity
Arkham data shows BitMine Immersion purchased over 67,000 ETH within the past week. The company bought from Galaxy Digital, FalconX, Coinbase, and other institutional brokers. These transfers totaled more than $234 million.
The purchases demonstrate institutional conviction despite current market weakness. BitMine’s buying activity supports Lee’s supercycle thesis.
Market Criticism
Some market participants dispute Lee’s analysis. One Bitcoin influencer questioned what unique advantage Ethereum possesses over competing smart-contract platforms.
Critics point to performance issues that persist despite recent network upgrades. Competitors like Solana offer faster transaction speeds and lower costs.
The debate centers on whether global financial markets will adopt Ethereum for round-the-clock settlement. Skeptics argue hundreds of other cryptocurrencies provide similar capabilities.
Ethereum dropped to a 24-hour low of $3,023 before recovering to trade flat at $3,185.
