Tom Lee forecasts Ethereum’s rapid recovery with a V-shaped trajectory
February 12, 2026
Tom Lee, who serves as the head of research at Fundstrat, is optimistic about the future of Ethereum. Lee has observed a pattern of rapid recovery for Ethereum following significant corrections since 2018. In fact, the second-largest cryptocurrency by market capitalization has experienced a robust rebound eight times in the past. Speaking at a conference in Hong Kong, Lee emphasized the importance of remaining calm in the face of market fluctuations.
During the period from January to March of the previous year, Ether saw a 64% depreciation. Despite these corrections, Lee pointed out that Ethereum has consistently demonstrated a V-shaped recovery in the wake of such events. Each time there has been a significant dip in price, the asset has bounced back rapidly, recovering 100% of the losses almost as quickly as they occurred. Lee believes that fundamentally, Ethereum remains strong and is poised for yet another rapid rebound.
In terms of identifying a possible bottom for Ether prices, BitMine analyst Tom DeMark has pinpointed the $1890 level as a potential turning point. Lee compared the current situation to previous market conditions in autumn 2018, autumn 2022, and April 2025. He advised investors not to fixate on finding the perfect entry point but to instead look for opportunities to enter the market.
On February 6, Ethereum’s price on Binance briefly dropped to $1747, just above the 2025 low of around $1400. While the asset failed to maintain its position above the psychological threshold of $2000, it is currently trading at $1981, marking a 36% decline over the last month.
Despite the price fluctuations, interest in staking Ethereum remains high. ValidatorQueue has reported a record queue length of 71 days, with 4 million ETH waiting to be deposited into the staking smart contract address. Moreover, the percentage of coins being staked has reached a new high, accounting for 30.3% of the total supply (equivalent to 36.7 million ETH, approximately $72.7 billion).
The Milk Road analyst described this trend as a “massive supply constraint” with a third of all coins being taken out of circulation and yielding a modest 2.83% annually. The locking up of over $70 billion worth of coins during a period of falling prices indicates investors’ long-term vision rather than mere speculation. This shift has led to a decline in Ethereum’s presence on exchanges for six consecutive months, driven by the growing demand for staking opportunities.
