Haciyev Reşit 
As the crypto market faced strong selling pressure over the weekend, investors once again turned their attention to comments from major figures. While declines in Bitcoin (BTC) and altcoins raised concerns, Tom Lee delivered a noteworthy assessment on Ethereum (ETH). Tom Lee, Chairman of BitMine, stated that he views the sharp drop in Ethereum not as a short-term risk, but as a medium- to long-term opportunity.
Ethereum Falls to $2,100
During the intense wave of selling over the weekend, Bitcoin fell to around $74,000, while Ethereum (ETH) came under similar pressure, testing the $2,100 level. A rapid increase in sell orders significantly boosted market volatility. Over the past week, Ethereum dropped from the $3,000 range to around $2,200, losing more than 25% of its value—one of the sharpest pullbacks in recent periods.
This steep decline weakened overall market risk appetite and led to a rise in liquidations across leveraged positions. However, despite the negative backdrop, some investors and market experts have begun to view the pullback as a medium- to long-term buying opportunity. Strong underlying fundamentals stand out as a key factor supporting this perspective.
Tom Lee: “This Decline Is Not Driven by Fundamental Issues”
Commenting on Ethereum’s drop, Tom Lee emphasized that the price action is disconnected from the network’s core fundamentals. According to Lee, the pullback is not the result of deteriorating fundamentals, but rather supply–demand imbalances and positioning-related factors. He noted that current price levels appear attractive from a medium- to long-term perspective and stressed that Ethereum’s on-chain metrics remain strong.
Based on data shared by Lee, usage on the Ethereum network has reached notable levels. He highlighted that daily transaction counts hit an all-time high of 2.8 million on January 15. Additionally, as of 2026, Ethereum’s daily active addresses have reached around 1 million. These figures suggest that despite the price decline, Ethereum continues to grow in terms of usage and adoption.
Lee also compared the current situation with previous crypto winters. He recalled that during the bear markets of 2018 and 2022, price declines in Ethereum were accompanied by falling transaction activity and active wallet counts. Over the past 12 months, however, the opposite trend has been observed.
“What we’ve seen in Ethereum over the past 12 months is completely different from previous bear markets. This shows that price weakness is not due to core network factors, but external influences.”
Two Main Factors Pressuring Ethereum’s Price
According to Tom Lee, two primary factors are currently weighing on Ethereum’s price. The first is the lingering impact of large-scale liquidations that occurred last October. These liquidations, particularly in leveraged positions, led to rapid position closures and fostered a more cautious market stance, limiting the speed of price recovery.
The second factor is the incomplete return of leverage in derivatives markets. Lee noted that heightened volatility has made investors more cautious about taking risk, reducing upward price momentum. In addition, rising prices in precious metals such as gold and silver have diverted risk appetite away from crypto assets. As capital flows toward perceived safe havens, Ethereum has faced additional downward pressure.
Nearly $7 Billion in Unrealized Losses at BitMine
Ethereum’s sharp decline has also had a significant impact on BitMine. With the rapid drop in ETH prices, the company’s unrealized losses reportedly approached $7 billion. Despite this, Tom Lee does not view the pullback as a negative signal. He argued that Ethereum’s current price does not yet fully reflect its future role as a financial infrastructure and its long-term value, reiterating that current levels are strategically attractive.
According to Lee, the sharp drop in Ethereum reflects temporary market dynamics rather than structural weakness in the network. Strong on-chain data, rising transaction volumes, and increased user activity indicate that Ethereum’s long-term potential remains intact. For this reason, Lee views current price levels as a long-term investment opportunity rather than a risk.
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