Tom Lee: Ethereum is Starting a Super Cycle Like Bitcoin

Recent fluctuations in the cryptocurrency market may stem from a significant gap related to market makers. Tom Lee, who points out that this situation is an important factor in the withdrawal process of crypto assets, outlines key points investors should pay attention to during the Fall period.

Lee, who is the President of BitMine Immersion Technologies and the research director at Fundstrat, stated that the sharp fluctuations faced by cryptocurrency markets are influenced by some large investors trying to trigger liquidation in the markets. He emphasized that while this process may lead to short-term pains, investors should not lose sight of the bigger picture.

Lee argued that a strong foundation has been established for Ethereum on Wall Street, suggesting that this situation has initiated a long-term super cycle for Ethereum. Reminding us that Bitcoin has experienced a pullback of more than 50% six times and more than 75% three times in its history, Lee expressed that volatility is inherent in this market. He stated that the significant gains for investors often depend on those who remain patient.

However, Lee's long-term optimistic outlook on Ethereum has faced some criticisms within the crypto community. Some Bitcoin advocates argue that Ethereum lacks a unique utility and that there are hundreds of blockchains with similar features. Nevertheless, Lee emphasized that although he refrains from providing a price target, the upward path of Ethereum will not be linear. It is clear that strong use cases and institutional adoption will be the real test of this thesis.

In the upcoming period, the sustainable growth of on-chain activity in Ethereum and layer 2 networks is considered a critical indicator for the market. Lee believes that the current market stress is temporary and predicts that a recovery could start within 6 to 8 weeks after Thanksgiving. He particularly advises investors not to use leverage during this process.