Tom Lee Says Current Ethereum Prices Are 'Future Optionality At A Discount'
Ethereum (CRYPTO: ETH) has already set its cycle bottom, according to BitMine Immersion Technologies (NYSE:BMNR) Chairman Tom Lee.
Lee Says Ethereum Bottomed In November
Lee said on Wednesday in a podcast that Ethereum's recent decline toward the $3,000 level did not change his long-term view and argued that volatility at lower prices makes accumulation easier for institutional buyers.
He added that BitMine doubled its purchasing pace over the past two weeks and will stake more than 3.7 million ETH in phases as part of its internal yield infrastructure.
Lee noted that Ethereum's previous bear cycles bottomed in November and said this year followed the same pattern.
He described the recent downturn as an "opportunity zone" rather than a structural breakdown.
Why Lee Views ETH As A Multi-Trillion-Dollar Asset
Lee told the host that Ethereum remains one of his highest conviction ideas for the next decade.
He framed ETH's valuation through two lenses: its long-term price ratio relative to Bitcoin (CRYPTO: BTC) and its potential network value once tokenization, AI infrastructure and on-chain financial services scale.
Lee said Ethereum's historical ratio of 0.08 to Bitcoin implies a theoretical value near $16,000 if Bitcoin reaches $200,000.
He also said the network's role in powering decentralized finance and AI-linked computation could justify valuations in the multiple-trillion range, arguing that current prices offer "future optionality at a discount."
BitMine's Treasury Strategy Echoes MicroStrategy's Bitcoin Model
Lee compared BitMine's strategy to Strategy's (NASDAQ:MSTR) Bitcoin accumulation, saying the market consistently rewards the strongest digital asset treasuries over weaker competitors.
He said more than 80 DAT companies now exist, but almost all trade below net asset value, while BitMine and Strategy capture more than 90% of total trading volume in the segment.
He added that BitMine maintains a large cash reserve alongside its ETH holdings, which he said reduces liquidity risk during drawdowns and strengthens investor confidence inhigh-volatility periods.
Why He Rejects Bitcoin's Four-Year Cycle
Lee pushed back on analysts who insist Bitcoin remains trapped in a four-year halving cycle.
He said similar four-year patterns in ISM manufacturing data, gold and copper have already broken in traditional markets.
He argued that if Bitcoin closes in January above $126,000, the cycle theory "no longer applies."
This could open the door to a stronger performance window for Ethereum and other L1 assets.
He added that a decisive move from Bitcoin would help reprice Ethereum quickly, especially if investor positioning shifts away from defensive sentiment driven by the October stablecoin liquidation glitch.
Tokenization Wave Could Drive A 2026 Breakout
Lee said he expects 2026 to be a "banner year" for digital assets despite concerns about a post-halving slowdown.
He pointed to the acceleration in tokenization initiatives, enterprise use cases, and prediction markets as catalysts that could reshape flows into the sector.
He said prediction markets will become a core part of financial discovery and may merge with tokenized assets in a way that gives individual investors access to strategies that today require hedge-fund-level infrastructure.
What's Next For Ethereum
ETH Price Action (Source: TradingView)
Ethereum has broken above its descending channel for the first time since early November and is now pushing into the key resistance band between $3,330 and $3,350.
This zone aligns with the 0.786 Fibonacci retracement and the mid-range supply pocket that rejected price twice last month.
A daily close above $3,350 would confirm a clean breakout and open room toward the 1.618 extension near $4,130.
Buyers remain in control as long as ETH stays above the $3,208 support cluster, which includes the 20 and 50 EMAs.
MACD has flipped firmly positive with expanding histogram bars, signaling that short-term momentum supports further upside.
If ETH loses $3,208, the next downside levels sit at the 0.5 Fibonacci retracement near $3,084 and then the 0.382 retracement at $2,973.
A break below these levels would weaken the current bullish structure and pull price back into consolidation around $2,830.
For now Ethereum is positioned in a constructive recovery phase.
Buyers reclaimed the trend, EMAs are stacking upward, and momentum indicators are aligned.
A confirmed breakout above $3,350 would shift the medium-term outlook toward the $3,600 zone, with the larger upside target at $4,130 if the breakout accelerates.
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