Rebecca Cruz BitMine’s Tom Lee predicts Ethereum is entering the same supercycle that fueled Bitcoin’s historic 100x rally, with long-term holders tightening their grip as accumulation surges.
Ethereum Starts Supercycle Momentum Similar to Bitcoin, Predicts Tom Lee
Ethereum may be gearing up for one of the most powerful rallies in crypto history, according to BitMine’s executive chair Tom Lee. Drawing parallels with Bitcoin’s meteoric rise since 2017, Lee believes Ethereum has entered a “supercycle” phase that could potentially deliver 100x returns over the next few years.
Lee shared his outlook in a post on X, pointing to Ethereum’s trajectory as eerily similar to Bitcoin’s early cycle behavior. Back in 2017, when Bitcoin traded around $1,000, Lee’s research firm Fundstrat first urged clients to accumulate it. Despite multiple 75% pullbacks through the years, Bitcoin ultimately multiplied more than 100 times, peaking above $126,000 earlier this year. Lee now sees Ethereum following the same path of exponential expansion, even amid recent volatility.
“Bitcoin has already achieved that 100x growth from our first call,” he noted. “Ethereum is now setting out on the same journey.”
Ethereum Mirrors Early Bitcoin Patterns as Market Resets
Ethereum’s price movement through 2025 has been notably uneven compared to Bitcoin’s breakout surge. While Bitcoin smashed through previous highs earlier this year, Ethereum lagged until August, when it hit an all-time high near $4,946. The crypto market has since cooled, with Ethereum down over 35% from its peak and Bitcoin retreating roughly 25%.
Tom Lee attributes the pullback to short-term doubt rather than long-term weakness. He believes such corrections are a hallmark of massive cycles, where skepticism often precedes parabolic rallies. “To gain from a 100x supercycle, one must endure the moments that test conviction,” he said.
This sentiment echoes through Ethereum’s long-term ecosystem, where patient investors have been quietly building positions during price drawdowns.
Long-Term Holders Continue Accumulating Ethereum Despite Pullback
Fresh data from analytics platform CryptoQuant highlights how Ethereum’s long-term holders are strengthening their positions even as prices remain under pressure. Contributor Burak Kesmeci noted that Ethereum is currently trading around $3,150, which places it just $200 above the average cost basis of veteran holders—those who have been “patiently stacking” through cycles.
He observed that Ethereum rarely dips below this level for long. The last instance occurred in April, coinciding with the onset of global tariffs under U.S. President Donald Trump. Each such test has historically turned into an opportunity for deep accumulation.
Kesmeci revealed that around 17 million Ethereum tokens have flowed into accumulation addresses this year alone, with long-term wallets now collectively holding 27 million Ethereum, up from just 10 million at the beginning of 2025. This surge in long-term ownership underscores growing confidence that Ethereum remains undervalued compared to its potential.
Should prices briefly slide below $2,900, Kesmeci suggested that this range could represent one of the strongest long-term accumulation zones in Ethereum’s history.
Ethereum’s Market Psychology Reflects Growing Institutional Confidence
Beyond on-chain trends, Ethereum’s evolving market structure mirrors an increasing maturity in investor psychology. Institutional interest continues to grow through staking and decentralized finance ecosystems, while Ethereum’s move toward deflationary issuance further strengthens its long-term appeal.
Many analysts interpret Ethereum’s current price consolidation as the quiet phase before a sustained bull expansion. The correlation between Bitcoin and Ethereum cycles, Lee emphasized, reveals that both assets respond to broader liquidity waves but reach their peaks at different stages.
If Ethereum truly mirrors Bitcoin’s 2017 to 2025 trajectory, the next major upswing could redefine the asset’s valuation. For now, the network’s expanding user activity, developer innovation, and rising institutional inflows paint an increasingly bullish picture for the years ahead.
Ethereum remains the cornerstone of decentralized applications, and its economic model continues to evolve toward efficiency and scarcity. The combination of strong fundamentals, long-term accumulation, and growing institutional presence suggests the current pullback could be a prelude to another explosive cycle.
Tom Lee’s confidence adds to the chorus of voices predicting Ethereum’s next major breakout. While short-term volatility may persist, the groundwork for a long-term super cycle appears to be forming, much like Bitcoin’s historic climb.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
