Tom Lee forecasts Ethereum V-shaped rebound; BitMine stock poised for breakout

Published: 2026-02-17 16:50:00 |

Tom Lee, BitMine’s chairman, expects Ethereum (ETH) to complete a historical V-shaped recovery from the current drawdown, a pattern he says has occurred in eight major ETH declines since 2018. Lee cited Ethereum’s strong fundamentals — largest smart-contract network, institutional adoption (e.g., JPMorgan use cases), falling exchange supply, record staking queues and its role as the largest stablecoin processor — as demand drivers that should support a rebound. BitMine (BMNR) has been accumulating ETH, now holding over 4.3 million tokens worth roughly $8.4 billion and adding ~157,000 coins in the past 30 days while generating yield via staking and investing cash balances. The company also plans startup investments, including a $200m stake in Beast Industries. Technically, BMNR stock formed a large falling-wedge on the daily chart and trades near key support at $20. The RSI has risen from ~25 to 37, suggesting momentum is improving. Analysts in the article argue a bullish breakout could send BitMine toward the $34 resistance (about 72% above current levels) if Ethereum’s bearish phase ends and the wedge resolves upward. Key keywords: Ethereum, ETH, BitMine, BMNR, falling wedge, staking, exchange supply, V-shaped recovery.

Bullish

The news combines a bullish fundamental narrative for Ethereum with specific corporate actions by BitMine that can amplify upside for BMNR stock. Tom Lee’s V-shaped recovery call points to renewed demand for ETH; supporting evidence includes falling exchange supply, record staking queues, institutional use-cases and BitMine’s ongoing accumulation (4.3M ETH, ~157k added in 30 days). From a trading perspective, these factors increase the likelihood of ETH price support and reduce sell-side liquidity, which historically precedes rallies. On the equity side, BMNR’s chart pattern — a large falling wedge with RSI recovering from oversold — is a classic bullish reversal setup; the $34 resistance target is a measurable upside (~72%). Short-term impact: positive price momentum for ETH could trigger a quick relief rally in both ETH and BMNR, attracting momentum traders and short-covering. Volatility may spike around any breakout, offering trading opportunities but also risk of false breakouts. Long-term impact: sustained ETH fundamental improvements (staking growth, reduced exchange supply, stablecoin throughput) would support higher ETH valuations and justify BitMine’s strategy of accumulation and staking yield, benefiting BMNR’s balance sheet and long-term equity investors. Risks: macro shocks, regulatory setbacks, or failure of ETH to reclaim broader bullish structure could invalidate the thesis. Overall, the combination of on-chain metrics and corporate accumulation makes a bullish case for both ETH and BitMine in the near to medium term.