Ethereum could face more downside before a rebound early next year, Bitmine’s chairman, Tom Lee, said in a recent with Chris Perkins of Wealthion.
Ethereum could face more downside before a rebound early next year, Bitmine’s chairman, Tom Lee, said in a recent with Chris Perkins of Wealthion.
The founder of Fundstrat expects the token to approach $2,500 in the short term. He forecasts a jump to $7,000 to $9,000 in January as new money flows into the market.
Notably, Ethereum trades at $2,940, a paltry 0.8% gain over the past day after a 30.5% loss over the past month. Ethereum is now 40% below its all-time high of $4,953 reached in August.
“Yeah, there is a downside, maybe, to $2,500, but that’s minor compared to the upside of trying to discount a super cycle. We think ETH can be $7,000–$9,000 by the end of January,” Tom Lee remarked.
Lee said Ethereum’s pullback from about $4,800 to below $3,000 reflects ongoing stress stemming from the October 10 crypto breakdown, when pricing issues and thin liquidity triggered widespread auto-deleveraging. He said market makers and leveraged traders were caught off guard, creating sustained selling pressure.
He cited analysis from technical strategist Tom DeMark, who views the current price action as part of a systematic liquidation cycle. DeMark places a downside target near $2,500, which he considers a potential “bottoming area” where forced sellers typically exit.
Lee added that crypto separated from equities after the October event. While stocks kept climbing through late October, digital assets continued to slide, suggesting the issue is structural rather than tied to new economic risks.
Lee said Ethereum’s long-term outlook is anchored in rising demand for tokenized assets. He compared today’s shift to the United States’ exit from the gold standard in 1971, which pushed Wall Street to create new financial instruments such as futures, ETFs, and money market funds.
He said stablecoins are playing the same role now by placing the dollar on blockchain rails. He noted that the growth of stablecoin issuers, including Tether, which he said is valued at several hundred billion dollars in recent fundraising discussions, signals the scale of the transition underway.
According to Lee, the digital dollar is only the beginning. He expects stocks and other assets to move on-chain, allowing continuous trading and faster settlement.
Bitmine, the digital asset company Lee chairs, holds roughly 3% of Ethereum’s circulating supply and aims to increase that to 5%. He said the company’s strategy includes building infrastructure, supporting staking networks, and facilitating communication between developers and traditional financial institutions.
Bitmine has begun building a validator network in partnership with several staking providers to create an extensive, compliant U.S.-based staking infrastructure. Lee expects staking yields to provide a steady income as the network grows.
He also discussed Bitmine’s investment in a treasury entity tied to Worldcoin, a project that uses iris-scanning technology to verify human identity. He said the system uses cryptographic hashing rather than storing biometric data, a feature he considers important as digital interactions increase.
