Ethereum May Be Entering a Bitcoin-Like ‘Supercycle,’ Says Tom Lee

History may be repeating itself, according to Tom Lee, the executive chair of Ethereum-focused treasury firm BitMine. He believes Ether is now tracing a pattern similar to the surge that sent Bitcoin more than one hundredfold higher starting in 2017. Lee frames the comparison strictly as an assessment of current behavior rather than a prediction for Ethereum, noting that the setup mirrors the phase Bitcoin went through at that time.

Lee’s View on Ethereum’s Trajectory

In a post on X, Lee recalled how he first guided Fundstrat clients toward a 1%–2% Bitcoin allocation in 2017, when the asset traded near $1,000. He outlined that Bitcoin experienced six drawdowns deeper than 50% and three that surpassed 75% over the past 8.5 years, yet still reached a hundredfold increase by 2025. Lee stressed that capturing that rise required enduring severe downturns, as crypto markets regularly react to uncertainty while pricing in long-term expectations.

He added that he now sees Ether entering a similar “supercycle,” though he cautioned that the advance will not be linear and reiterated his stance to hold through volatility.

Market Performance and Analyst Perspectives

Ethereum’s performance earlier in 2025 contrasted with Bitcoin’s strong rally. The token struggled to keep pace, peaking at $4,953 in August, while Bitcoin continued climbing and eventually surpassed $126,000 in October. Since then, both assets have retreated, with Bitcoin down more than 24% and Ethereum falling over 35%, reflecting a broader market pullback.

Despite Ether’s deeper decline, some analysts consider the current zone an appealing entry point. Market analyst Michaël van de Poppe stated on X that he continues to view Ether favorably after its roughly 30% pullback relative to Bitcoin. He described the present range as attractive for accumulation, noting that Ether has shown relative steadiness even as Bitcoin recorded its weakest week of the year. Van de Poppe also suggested that Ethereum’s current pricing is unlikely to persist for long.

Ethereum Positioning and Long-Term Outlook

A broader perspective comes from CryptoQuant contributor Burak Kesmeci, who provides insight into Ethereum’s current positioning and long-term investor behavior:

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  Ethereum is trading around $3,150, roughly 8% above the Accumulation Addresses Realized Price of $2,895, which reflects the average entry point of long-term holders.
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  Ether briefly dipped below this level during the April 2025 Trump tax-tariff event, but accumulation addresses still grew from 10 million to over 27 million, showing continued confidence among long-term holders.
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  Kesmeci suggests that a drop closer to the realized price could offer a strong accumulation opportunity, and any short-term decline under $2,900 is unlikely to persist.

Meanwhile, Lee weighed in on the recent downturn, noting in a November 15 post on X that it may have been caused by one or more market makers with significant balance-sheet gaps, which allowed others to trigger liquidations and push Bitcoin lower. He described the pressure as temporary and stressed that it does not change his broader view of an Ethereum supercycle driven by growing institutional adoption of blockchain technology.