Tom Lee, head of research at Fundstrat, said he expects Ether to recuperate quickly after recent declines, arguing that the asset has experienced eight such recoveries since 2018.
“Many individuals are frustrated, but do not forget that Ethereum has fallen greater than 50% eight times since 2018,” Lee said at a conference in Hong Kong on Wednesday.
Last 12 months, Ethereum fell 64% from January to March, he added.
“But eight out of eight times, Ethereum had a V-shaped bottom. So 100% of the time, it recovered at almost the identical speed because it fell.”
He argued that nothing has modified and that Ether (ETH) will see one other V-shaped bottom.
The last eight declines have seen a V-shaped recovery for ETH. Source: Fundstrat
ETH is near bottom, says Lee
BitMine market analyst Tom DeMark called the $1,890 price level a possible bottom, but said he would hit that level twice if there was an “undercut.” Lee explained that this was a “perfected floor” and added:
“We think Ethereum is basically near the underside, and I believe it's identical to it was in fall 2018, fall 2022, and April 2025. The bottom isn't really something to fret about. If you've already seen a decline, that is where it’s best to take into consideration opportunities as a substitute of selling.”
According to TradingView, Ether prices on Coinbase fell to $1,760 on February 6, just under the 2025 low of just over $1,400.
The asset didn’t hold above $2,000 and fell to $1,970 on the time of writing after plunging 37% over the past 30 days.
Ether entry is waiting for an all-time high
Despite the asset's poor performance this 12 months, data shows there stays strong demand for Ether staking.
According to ValidatorQueue, the present wait time for staking Ether is at an all-time high of 71 days, with a record 4 million ETH within the validator entry queue. The percentage of supply staked can be at a record high of 30.3% or 36.7 million ETH.
The obvious impact of this can be a “massive supply constraint,” analyst Milk Road said on Wednesday.
“A 3rd of all ETH is now illiquid, earning a modest APR of two.83%,” they added. “That's not a very attractive return by crypto standards. Yet individuals are still lining up.”
“When people accumulate $74 billion during a price drop, they don't speculate. They get used to it.” 
At peak times, the entry queue waits for Ethereum stakes. Source: ValidatorQueueCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph's editorial guidelines and goals to offer accurate and up-to-date information. Readers are advised to independently confirm the data. Read our editorial policies https://cointelegraph.com/editorial-policy
