Quick Take
Tom Lee says Ethereum is bottoming, and one large holder has bet on that view.
Momentum on the daily chart has started to turn up, though sellers still lead the trend.
Traders are watching the first resistance just above the 200-day average as the first real test.
Wall Street strategist Tom Lee says Ethereum has hit a floor, and a large holder appears to share his view.
The call arrives after a painful month for ETH, with the price stuck below its key trend lines. Early momentum signals offer some hope for buyers. Traders now want to see whether ETH can reclaim its averages or slips again.
Tom Lee Says Ethereum Is Bottoming as a Whale Backs Him
Lee, known for his bullish crypto calls, gave no price target or time frame. He argues that selling pressure on ETH looks exhausted.
The call lands after ETH lost about 13% over the past 30 days.
One large holder appears to agree. A whale has placed a bet worth roughly $45M that Lee is right. Big money appears to be preparing for a rebound.
The chart is more cautious. ETH trades near $2,250, still below its first resistance level.
Ethereum Trades Beneath Both Averages It Needs to Reclaim
Ethereum (ETH) daily price with the nearest support (green) and resistance (red). Source: TradingView
Ethereum sits under both of the moving averages that traders watch most closely. The 50-day average stands near $2,390. The 200-day average, a gauge of the longer trend, sits around $2,310.
Trading below both lines means each one now acts as a ceiling. Buyers would need to push through the 200-day first and then the 50-day before the broader trend could turn up. Until then, the bigger picture still leans down.
ETH ended both the last 24 hours and the week flat. The selling has paused, but buyers have yet to take control.
Trend strength readings show a trend forming, with sellers still leading it. That leaves the burden on buyers to prove the floor is real.
Momentum Turns Up While RSI Stays Weak
RSI, a 0 to 100 gauge of momentum, reads 41 on the daily chart. That sits in weak territory, below the neutral middle band. It is still well above the oversold zone, where sellers usually run out of steam.
ETH lacks strong upward momentum, yet it has room to climb before it looks overheated.
The MACD, which compares a short-term and a longer-term average of price, offers a brighter signal. It has crossed above its signal line, so short-term momentum has started to turn up.
This crossover is the first chart evidence that lines up with Lee’s bottoming view. On its own, it marks a change in direction without confirming a rally.
$2,360 Is the First Test of the Rebound Call
The first real test sits near $2,360, about 5% above the current price. That level lies just beyond the 200-day line, so a break would clear two hurdles at once.
A daily close above it would open the way toward the next resistance near $2,450, just past the 50-day line. Clearing it would show buyers have taken back the broader trend.
On the downside, the cushion is wide. The nearest support sits near $1,850, roughly 18% below today’s price. A second floor near $1,860 makes the area one thick band of support.
Losing that band would undo the bottoming thesis.
What Would Prove Lee Right or Wrong by the Weekend
Two paths could settle the call within days.
Bullish: A daily close above that first resistance would put the next ceiling just past the 50-day line within reach. This case fails if ETH slips back under the 200-day average, which would turn the breakout into a false start.
Bearish: A rejection at the first resistance would send sellers back toward the thick support band far below. This case fails if ETH closes above the 50-day average, which would hand the trend back to buyers.
A Credible Call Still Waiting for Price to Confirm It
The MACD turn and the quiet week hint that a base may be forming. Still, Lee’s call stays unproven until ETH clears the first resistance and holds.
The whale’s position shows conviction, yet one large bet cannot set a trend.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
