Tom Lee predicts that Ethereum is poised to follow a supercycle trend similar to Bitcoin – Coinpaper
Analysts such as Tom Lee, the chairman of BitMine, suggest that Ethereum is on the brink of entering a “supercycle” akin to Bitcoin’s trajectory following 2017. Lee shared his insights on X, noting that significant pullbacks historically foreshadowed major upward movements. This sentiment is supported by on-chain data revealing a record accumulation of 27 million ETH by long-term wallets, with the asset hovering near their average cost basis, a level typically associated with robust buying opportunities. BitMine Immersion Technologies has recently restructured its leadership, appointing Chi Tsang as CEO and expanding its board to enhance governance protocols. Moreover, institutional interest in cryptocurrencies continues to grow, exemplified by ARK Invest’s increased exposure to BitMine and the adoption of crypto treasury strategies by various companies across platforms like Solana and Zcash.
Drawing parallels between the trajectories of Bitcoin and Ethereum, experts believe that Ethereum’s current fluctuations mark the early stages of a long-term trend that resembles Bitcoin’s exponential growth over the past decade. Tom Lee underscored this point, emphasizing that Ethereum appears to be on the cusp of a “Supercycle,” similar to the one that propelled Bitcoin’s value by over 100 times since his initial endorsement in 2017 when Bitcoin was valued at $1,000. Despite experiencing numerous sharp corrections, including significant drawdowns exceeding 75%, Bitcoin ultimately reached a record high above $126,000 in October 2025.
Lee views Ethereum’s recent downturn as part of a broader market pattern characterized by investor skepticism, a pattern akin to the one that accompanied Bitcoin’s monumental climb. He argues that the prevailing extreme volatility signifies ongoing efforts in the market to anticipate significant future developments, noting that enduring such volatility often leads to substantial gains. On-chain data indicates that long-term Ethereum holders perceive the current market downturn as an opportunity rather than a setback. CryptoQuant analyst Burak Kesmeci observed that Ethereum’s current price of approximately $3,150 is marginally higher than the average cost basis for long-term accumulator wallets, which have steadily accumulated ETH throughout the year. According to Kesmeci, Ethereum has briefly fallen below this level only once in 2025 amid a market shock triggered by global tariff policies implemented by former US President Donald Trump.
Despite the prevailing market contraction and minor fluctuations, Ethereum has maintained stability around the $3,185 mark, exhibiting resilience amidst market uncertainties. Approximately 17 million ETH has flowed into long-term accumulation addresses this year, bolstering the total balance in these wallets from 10 million to 27 million ETH. Kesmeci posits that Ethereum’s descent below the $2,900 cost basis is unlikely to persist for long, emphasizing this as a historical price zone conducive to long-term accumulation strategies.
In a significant development within the Ethereum ecosystem, BitMine Immersion Technologies announced a pivotal leadership transition, appointing Chi Tsang as CEO in place of Jonathan Bates. Under the stewardship of chairman Tom Lee, BitMine has undergone a transformation from a mining company to a prominent Ethereum treasury firm, amassing over 3.5 million ETH. Tsang envisions BitMine’s growing influence in the Ethereum landscape and increasing recognition on Wall Street positioning the company as a foremost financial institution. Concomitantly, BitMine has expanded its governance structure by appointing three new independent board members, solidifying its position as the largest publicly traded Ether treasury company.
As institutional interest in Ethereum mounts, ARK Invest disclosed its acquisition of approximately $2 million in BitMine shares on November 7, further bolstering Ethereum exposure across its ETFs. Despite BitMine’s recent stock fluctuations, declining roughly 30% over the past month, the company’s stock continues to trade on the New York Stock Exchange at $34.43. In line with the trend of corporations diversifying their balance sheets with digital assets, other publicly traded companies are also embracing similar crypto treasury strategies. Forward Industries leads the pack with the most significant Solana holdings, while Leap Therapeutics, now rebranded as Cypherpunk Technologies, recently ventured into Zcash by acquiring $50 million worth of the privacy coin as part of its treasury strategy.
In conclusion, Ethereum appears poised to embark on a transformative journey mirroring Bitcoin’s historic rally, buoyed by on-chain data indicating sustained interest from long-term holders. BitMine’s leadership revamp underscores the company’s commitment to fortifying its presence in the Ethereum ecosystem, while institutional investments signal a broader acceptance of cryptocurrencies as strategic assets. These developments underscore a paradigm shift in how corporations view digital assets, positioning cryptocurrencies as integral components of strategic balance sheet management.
