Tom Lee stated that the current dynamics of Ethereum resemble the early stage of Bitcoin’s rally in 2017. According to him, ETH’s weakness is temporary and reflects market doubts rather than a deterioration of the asset’s fundamental metrics.

Analysts note that Ethereum is approaching the average price of long-term holders, which has historically coincided with periods of strong accumulation. Against the backdrop of a market pullback, investors continue to move coins into long-term wallets.

Interest is also supported by the actions of large holders: wallets with 10,000–100,000 ETH have increased their balances, indicating a gradual build-up of demand. Such dynamics usually precede major price movements.

Additionally, the situation is supported by a decline in network fees to their lowest levels in recent years. Experts believe that the Ethereum market is entering a compression phase, which is often followed by notable upward impulses.