Tom Lee, cofounder of Fundstrat and executive chair of BitMine, believes Ethereum is embarking on the same "Supercycle" that propelled Bitcoin to over one hundred times its value in the past eight years. Lee shared this perspective on X, reflecting on his original Bitcoin recommendation in 2017 when the asset was priced around $1,000. At the time, he advised Fundstrat clients to allocate a small one to two percent to Bitcoin.
Since then, Bitcoin has experienced significant volatility, including six drops exceeding 50% and three declines of over 75%. Despite these downturns, it has delivered a hundred-fold gain from Lee's initial recommendation.
Bitcoin is a volatile asset. We first recommended Bitcoin to Fundstrat clients in 2017 (1%-2% allocation) – Bitcoin 2017 ~$1,000. Since then (past 8.5 years), $BTC: – 6 declines > -50% – 3 declines > – 75%. 2025, Bitcoin 100x from our first recommendation. TAKEAWAY: To have… pic.twitter.com/xtIRGLdnWM
— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) November 16, 2025
Lee acknowledged that these substantial gains were achieved through periods of intense stress. He stated that to benefit from such a Supercycle, one must be able to endure "existential moments to HODL." The reason for this inherent volatility, according to Lee, is that crypto prices "discount a massive future," and inherent doubt often leads to sharp price swings.
He posits that Ethereum is now entering a similar long-term cycle.
Ether Trails Bitcoin, but Accumulation Is Rising
Throughout much of 2025, Ethereum's performance has lagged behind Bitcoin. Bitcoin reached a new all-time high above $126,000 in October. While Ether achieved its own peak of $4,946 in August, it has not maintained that pace since. As of Monday, Bitcoin is approximately 25% down from its record high, whereas Ether has fallen over 35% from its peak.
Lee suggests that this volatility does not alter the long-term outlook. He views the current pullback as a component of a broader cycle where doubt serves to pave the way for future growth.
On-chain data appears to support this perspective. According to Burak Kesmeci, an analyst at CryptoQuant, Ether's current price is nearing the average cost basis of long-term holders.
With Ether trading around $3,185, it is only about $200 above the price level where long-term accumulators last made purchases. Ether has only dipped below this threshold once this year, in April, during a period of uncertainty stemming from global tariff announcements.
Kesmeci noted that this price zone represents one of the strongest long-term accumulation ranges for Ether. Over 17 million ETH has been acquired by accumulation wallets in 2025. The total balance held by these long-term addresses has increased from 10 million ETH at the beginning of the year to 27 million ETH currently. He anticipates that if the price falls below $2,900, it is unlikely to remain there for an extended period.
Ether briefly touched a low of $3,023 on Sunday but has since stabilized.
What Lee's Call Means for the Market
Lee's assessment introduces a significant shift in market discourse. Much of the conversation this year has focused on Bitcoin's strength, with Ethereum playing a secondary role. However, Lee's viewpoint suggests that Ether might be in the nascent stages of a larger cycle, mirroring Bitcoin's trajectory from 2017 to 2025.
The core message is straightforward: the path forward will not be without its challenges, but the long-term trend, in his opinion, is upward. As he aptly put it, "The path higher is not a straight line. HODL."