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Cryptocurrency strategist Tom Lee believes Ethereum’s recent decline has not altered its long‑term story. In a recent market comment, he argued that the blockchain’s fundamentals remain robust despite volatility. He highlighted the growing number of projects using Ethereum for real‑world asset tokenisation and stablecoins.
Major financial institutions such as BlackRock are exploring ways to issue traditional assets on‑chain; Lee said this initiative requires a neutral blockchain with uninterrupted availability, and he characterised Ethereum as meeting this requirement. He described Ethereum as being in a “supercycle” and maintained a positive view over longer horizons.
Lee also assessed metrics that may indicate a cyclical floor. He pointed to the ratio of the value of assets locked on Ethereum to its market capitalisation and observed that previous bottoms occurred near 50 %. He noted that the current level is close to this threshold, suggesting a potential bottom this week.
In addition, he compared Ethereum’s price and network value relative to Bitcoin. He calculated that if the ETH/BTC ratio returned to its eight‑year average, Ethereum’s price could reach around $12,000, implying the token is undervalued. Lee added that the combination of solid fundamentals and undervaluation supports a bullish long‑term outlook.
Market data reveal that Ether fell by about 20 % in November, dropping from nearly $3,900 to below $3,000. The decline created a series of lower highs and lower lows, leading to a clear daily downtrend. Analysts describe this environment as fragile but note that long‑term accumulation signals are emerging.
One sign comes from Capriole Investments’ “Mayer Multiple,” which measures the ratio of Ethereum’s price to its 200‑day moving average; the multiple fell below 1 for the first time since mid-June.
Values below 1 suggest Ether trades at a discount to its long‑term trend and have historically aligned with major accumulation zones. Analysts interpret this indicator as positioning the market closer to early‑cycle reset conditions rather than a structural breakdown.
Liquidity data indicate the market may need to absorb further selling before stabilising. Analytics firm Hyblock Capital highlighted that long‑liquidation clusters remain at $2,904–$2,916 and $2,760–$2,772. These clusters represent leveraged positions that could trigger additional price swings if breached.
Another platform, Altcoin Vector, said Ethereum liquidity has “fully reset” and noted that such collapses often precede multi‑week bottoming phases. The firm advised that the rebound may hinge on how quickly liquidity is replenished; a protracted rebuilding process could extend the current correction.
Also Read: Ethereum’s Role in Tokenizing Real-World Assets: What Comes Next?
Ethereum price action reflects a mix of macro pressures and on‑chain dynamics. The asset retested the psychologically important $3,000 level amid a broader risk‑off environment.
Despite the drawdown, many investors continue to monitor fundamentals such as adoption in asset tokenisation and stablecoin issuance. Lee’s view that Ethereum could be nearing a cyclical bottom aligns with historical patterns around locked value ratios and the Mayer Multiple indicator.
Short‑term volatility remains a feature of the market. Liquidity clusters near $2,900 and $2,760 could lead to further price swings, and the time it takes for liquidity to reset may shape the path to recovery.
Investors and analysts will watch whether on‑chain metrics strengthen and whether the ETH/BTC valuation gap narrows as a sign of renewed momentum. While no specific price target has been noted, Tom Lee shows confidence in Ethereum’s role in the evolving tokenisation landscape and suggests that the current correction may be approaching its end
