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Ethereum News Update: Ethereum Faces $2,500 Threshold—Beginning of a Supercycle or Start of a Major Sell-Off?

Ethereum News Update: Ethereum Faces $2,500 Threshold—Beginning of a Supercycle or Start of a Major Sell-Off?

Bitget-RWA2025/11/26 23:04
By:Bitget-RWA

- Tom Lee predicts Ethereum's $2,500 support level could trigger a buying frenzy, framing it as a structural inflection point after systematic liquidation. - BitMine's 3.63M ETH holdings and recent $20M WorldCoin investment signal institutional confidence in Ethereum's long-term tokenization potential. - While Dencun upgrades and staking yields bolster fundamentals, macro risks and $1,500 downside remain concerns amid volatile $2,900-$3,115 near-term price action.

Ethereum’s price movement has captured the attention of both investors and market observers, as Tom Lee, chairman of BitMine and former strategist at Fundstrat, predicts that the $2,500 mark could serve as a springboard for significant buying activity. Lee, a consistent advocate for Ethereum’s long-term prospects, contends that the recent decline from $4,800 to $2,800 is the result of systematic liquidations rather than a breakdown in fundamentals, making $2,500 a pivotal turning point. “This is a deliberate shakeout,” Lee stated,

, who sees $2,500 as a foundational low where selling pressure dissipates. According to Lee, the recent drop who are compelled to sell quickly, resulting in a sharp but short-lived correction.

Technical indicators in the market reinforce this perspective. The $2,500 level for Ethereum is being closely monitored as a crucial support area, with on-chain data and derivatives positioning pointing to potential stability if buying interest holds steady

. BitMine, which owns 3.63 million ETH (about 3% of the total supply), has increased its holdings, in Ethereum’s future value. Lee highlighted that a recovery from $2,500 could set the stage for a rally to $7,000–$9,000 by January 2026, and expanding institutional involvement. This outlook is consistent with broader developments, and advancements in Layer-2 solutions, which Lee likens to a “ChatGPT moment” for blockchain technology.

Nonetheless, the road to recovery is not without obstacles. Ethereum’s lag behind the S&P 500—up 20 days after its peak, while ETH continues to slide—reveals some structural vulnerabilities. The market crash on October 10,

, intensified these challenges. that while $2,500 may act as a near-term bottom, a further drop to $1,500, though unlikely, remains possible if economic pressures and regulatory issues worsen.

On the other hand, institutional engagement provides some support. BitMine’s recent $20 million commitment to

, a project focused on biometric verification, along with its upcoming staking platform MAVEN, . The announcement of dividends by BitMine, a rarity among major crypto firms, . At the same time, ETF inflows, while still trailing those of Bitcoin, are beginning to stabilize, recorded on November 21, ending a nine-day streak of outflows.

Long-term confidence is rooted in Ethereum’s core strengths. Forthcoming upgrades like Dencun are designed to boost scalability and lower Layer-2 expenses, while staking returns and developer engagement remain strong

. Lee’s ambitious 10–15-year projection of $60,000 in Ethereum’s potential as a global payment network and its capacity to digitize traditional assets.

In the short term, volatility persists,

as buyers defend the $2,900 threshold. A move above $3,115 could spark renewed upward momentum toward $3,600, but ongoing outflows and economic uncertainty present immediate risks. For now, the market is watching to see if $2,500 will hold—a level Lee believes will either confirm his supercycle theory or reveal deeper issues.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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