Ethereum Price Sinks 11% In A Week But Tom Lee Predicts Supercycle Like Bitcoin’s 100x Rally

The Ethereum price sank 11% in the last week and a fraction of a percent over the past 24 hours to trade at $3,203.31 as of 4.22 a.m. EST on trading volume that skyrocketed 91% to $34.6 billion.

This comes as Tom Lee, executive chair of ETH-focused treasury firm BitMine, says that Ether may be entering the early stages of the type of explosive growth cycle that propelled Bitcoin to a 100x rally since 2017.

According to Lee, the current Ether market movement resembles Bitcoin’s setup eight years ago, a period marked by deep volatility that ultimately preceded one of the strongest bull cycles in crypto history.

Furthermore, Lee noted that his firm recommended Bitcoin to Fundstrat clients in 2017 when the token traded near $1,000. However, BTC suffered several drawdowns of up to 75%, yet still surged more than 100-fold from that initial call.

“We believe ETH is embarking on that same Supercycle,” he wrote, arguing that Ether’s recent weakness reflects doubt, not deterioration.

Investors who held on were rewarded with sizable gains, strengthening the case for patient capital in high-conviction digital assets.

Ethereum Price Corrects After Rounded-Top Formation

After rallying strongly between June and August 2025, the ETH price formed a rounded-top pattern near the $4,945 resistance level, signaling a correction.

This structure was reinforced as sellers stepped in repeatedly around the $4,800–$4,900 zone, eventually pushing the Ethereum price into a bearish retracement.

ETH went into a sustained downtrend after the token lost support near the $4,340 region, causing Ethereum to fall into a steady downtrend.

This pullback aligned with the rejection from the 0.236 Fibonacci retracement level at $3,819, confirming the bearish shift.

Meanwhile, the Ethereum price action then continued to weaken as it fell below both the 50-day Simple Moving Average (SMA) (around $3,874) and later the 200-day SMA (near $3,474), deepening the correction toward the 0.5 Fibonacci level at $3,234.

However, ETH has recently shown signs of stabilization around this midpoint retracement, with buyers attempting to hold the $3,200 area.

Despite the ongoing correction, the Relative Strength Index (RSI) is beginning to flatten near 37, indicating that bearish momentum may be easing even though ETH is not yet in oversold territory.

The overall structure still leans bearish in the short term, as the price of ETH remains below both major moving averages. The downward slope of the 50-day SMA reflects ongoing selling pressure, while the price of Ethereum, hovering under the 200-day SMA, shows that bulls have more work to do before reclaiming broader trend control.

ETH Price Prediction

Based on the current technical setup, the ETH price appears to be preparing for a rebound after its corrective wave following the rounded-top reversal pattern.

If the $3,200 support area holds, anchored by the 0.5 Fibonacci retracement, the Ethereum price could attempt a rebound toward the 200-day SMA at $3,474, with a potential extension toward the 0.382 Fibonacci level around $3,495.

A successful reclaim of these levels by the price of ETH bulls may allow the token to recover toward the 50-day SMA near $3,874.

However, rejection from the 200-day SMA could lead to the price of Ethereum falling even further, targeting the 0.618 Fibonacci level at $2,972 or even the deeper 0.786 retracement near $2,600.

Ali Martinez, a popular analyst on X with over 163k followers, said ETH could open up more buying positions for investors at the $1,800 support level.