Ethereum is still under pressure as the wider crypto market struggles to find direction. ETH is trading around $2,006, down nearly 3% on the day and more than 50% below its 2025 high of $4,900. The decline reflects months of weak investor confidence, forced sell-offs, and lower trading activity. While short-term rebounds have occurred, the overall trend remains weak as traders stay cautious due to regulatory concerns and tight financial conditions.
From a price chart perspective, Ethereum is trying to settle after sharp losses. Buyers are defending recent lows, but upward moves continue to face strong selling pressure. Trading volumes have dropped, though long-term investors appear to be slowly adding to their positions.
Why Tom Lee Is Buying Ethereum at Lower Levels
Despite the ongoing downturn, BitMine, an Ethereum-focused treasury firm led by Tom Lee, continues to buy ETH. The company recently added roughly $84 million worth of Ethereum to its holdings. Lee has openly acknowledged that BitMine is sitting on about $8 billion in unrealized losses, but says this is expected when holding through a full market cycle.
According to Lee, Ethereum’s long-term outlook remains intact. He points to steady activity on the network, continued use in decentralized finance, and Ethereum’s leading role in smart contract applications. He believes buying during periods of market stress improves long-term returns.
Details of BitMine’s Latest ETH Purchase
Blockchain data from Lookonchain and Arkham Intelligence shows BitMine completed its latest purchases through two large transactions. The firm bought 20,000 ETH via FalconX and another 20,000 ETH through BitGo within a short period.
With these additions, BitMine now holds about 4.33 million ETH, valued at roughly $9.14 billion based on prices last week. The company also disclosed that it has already reached over 72% of its goal to acquire up to 5% of Ethereum’s circulating supply.
Staking Helps Offset Price Volatility
To reduce the impact of price swings, BitMine has staked close to two-thirds of its Ethereum holdings. This approach is expected to generate around $200 million in yearly staking rewards, allowing the firm to earn income while waiting for the market to recover. Lee has highlighted staking as a major benefit of holding Ethereum during extended downturns.
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How Much More Can Ethereum Fall?
If selling pressure increases or global markets weaken further, analysts warn Ethereum could revisit or briefly fall below recent cycle lows. A drop of 60% to 70% from the 2025 peak would not be unusual compared to past market cycles, especially if liquidity tightens further.
Where Ethereum Could Recover
While downside risks remain, Lee believes the upside potential is still strong. If adoption grows and investment flows return, he expects Ethereum to regain momentum and possibly trade between $6,000 and $8,000 in the next market cycle.
For BitMine, the continued buying during weakness reflects confidence that the current downturn is temporary, not a sign of lasting damage to Ethereum’s long-term value.
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FAQs
Ethereum is falling due to weak market sentiment, regulatory uncertainty, forced sell-offs, and tight global liquidity reducing risk appetite.
Tom Lee believes buying ETH during market stress improves long-term returns as Ethereum’s network usage and smart-contract leadership remain strong.
BitMine holds about 4.33 million ETH, worth roughly $9.1 billion, putting it close to its goal of owning 5% of ETH’s circulating supply.
Ethereum could drop 60–70% from its peak in a worst-case cycle, but long-term recovery targets range from $6,000 to $8,000.
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