Tom Lee Sees ETH Pullback as Stepping Stone to $5,100
Fundstrat’s Tom Lee and Head of Technical Strategy Mark Newton describe the recent ETH pullback to around $4,150 as a healthy correction. Newton identifies a risk/reward entry zone of $4,075–$4,150, anticipating a rally to $5,100. Ethereum brush support near a CME futures gap at $4,070 and analyst Michaël van de Poppe highlights $4,100–$4,250 as strong support levels. Exchange reserves have fallen to a three-year low of 18.5 million ETH, while on-chain data shows whale accumulation. In the past 24 hours, ETH traded between $4,204 and $4,382, settling at $4,293, flat on the day and down 0.5% weekly, compared to Bitcoin’s 2.5% drop. Despite short-term sentiment shifting lower, institutional demand remains robust. Bitmine Immersion Technologies, chaired by Lee, holds 1.15 million ETH, underscoring long-term bullish prospects. The firm even projects a potential $60,000 price target as on-chain supply contracts. This analysis suggests the Ethereum pullback may offer traders a low-risk entry ahead of a possible surge.
Bullish
The article frames the ETH pullback as a strategic correction that sets the stage for a rally toward $5,100. Such healthy corrections have historically preceded new highs in Ethereum, as seen in early 2021 when a dip below key support levels attracted institutional buyers and propelled ETH to record peaks. Fundstrat’s projection is supported by on-chain indicators like falling exchange reserves and whale accumulation, suggesting strong underlying demand. While short-term sentiment has cooled, the entry zone around $4,075–$4,150 offers traders a favorable risk/reward ratio. In the short term, renewed buying pressure could emerge from both retail and institutional investors. Over the long term, continued supply contraction and Wall Street involvement may sustain upward momentum, reinforcing a bullish outlook for ETH.