Tom Lee Predicts Ethereum Price Could Recover Fast After $200B Market Wipeout

The crypto market has been under heavy selling pressure, with more than $200 billion wiped out in a sharp correction. Bitcoin slid to a seven-week low, dragging Ethereum down with it. 

But while traders remain cautious, Fundstrat Global Advisors co-founder Tom Lee believes Ether’s bottom could be in “within hours.” His call came just as ETH bounced from $4,313 back above $4,430, hinting at early signs of resilience.

Why Fundstrat Sees a Bottom Forming

Lee’s optimism is echoed by Mark Newton, Fundstrat’s head of technical strategy, who says Ethereum’s setup offers a favorable risk-to-reward opportunity. According to Newton, ETH is unlikely to break below last week’s low and could soon push higher. He sees a recovery zone between $5,100 and $5,450, suggesting the current weakness may be short-lived.

“ETH looks like a great risk/reward right now. I don’t see it breaking this trend or falling below $4,067, only then would the bullish case be invalid,” Newton explained.

Meanwhile, some traders remain divided. A user named Flyu pointed out that an updated quant chart shifted Ethereum’s trendline higher by starting in August rather than June. That adjustment removes the possibility of ETH retesting support near $4.15K, reinforcing a more bullish structure.

BitMine Buys the Dip in Ethereum

Adding weight to the bullish case, BitMine Immersion Technologies has been aggressively expanding its ETH holdings. During the recent dip, the company purchased 4,871 ETH worth $21.3 million, raising its total to 1.72 million ETH valued at roughly $7.5 billion.

BitMine now controls nearly 40% of all Ether held by corporate treasuries, making it the largest institutional holder of the asset.

Institutional Accumulation is Growing

This move is part of a broader trend of institutions using downturns to build positions. BitMine also disclosed that its crypto and cash reserves grew by $2.2 billion in just one week, lifting its net asset value per share from $22.84 in late July to $39.84.

At the same time, Michael Saylor’s Strategy added $357 million worth of Bitcoin to its treasury, showing that both ETH and BTC continue to attract long-term buyers at lower levels.

What This Means for Ethereum Investors

Ethereum is still down 11% from its all-time high, but the combination of technical signals and heavy institutional buying suggests a recovery may already be in motion. If Tom Lee’s call proves right, Ether could be entering its next leg higher much sooner than expected, with big players like BitMine leading the charge.