Why is Tom Lee calling Ethereum’s latest price drop a buying opportunity?

Fundstrat’s Tom Lee reiterated his bullish long-term outlook while Bitmine Immersion Technologies disclosed another major Ether purchase during the recent market pullback, even as the flagship altcoin remained under pressure.

Ethereum price is down roughly 8% in the past 7 days, as per Coingecko data. Market weakness has coincided with renewed risk aversion across digital assets, particularly among higher-risk altcoins.

According to comments posted by Lee on X, the latest weakness in Ethereum prices has been tied largely to macroeconomic conditions, particularly rising oil prices, rather than any deterioration in the network’s long-term outlook

Lee said Ether’s inverse correlation with crude oil had reached its “highest ever,” arguing that the rally in energy markets over the past six weeks coincided with a decline in ETH prices.

Lee described the pullback as an “attractive opportunity” for accumulation, adding that Bitmine expects to eventually control 5% of Ethereum’s circulating supply sometime in 2026.

Meanwhile, Ethereum’s long-term outlook has continued to split opinion across Wall Street firms, with projections ranging from steep declines to fresh record highs.

In a March report, Citigroup projected that Ethereum could rise to $3,175 over the next 12 months, while the bank’s bullish scenario placed ETH closer to $4,488 on expectations of continued growth in stablecoins and tokenization activity.

On the other hand, prediction market data cited by CoinGecko suggested Ethereum has a 48% probability of ending the year near $1,500, while assigning a 25% chance to a move toward $3,500.

Earlier this year, Standard Chartered maintained one of the more aggressive forecasts for Ether

Geoffrey Kendrick, the bank’s head of digital assets research, stated in a January report that Ethereum could reach $7,500 by year-end if adoption of blockchain-based financial products continues expanding.

## Whale activity weighs on sentiment

Elsewhere in the market, large Ethereum holders were seen moving substantial amounts of ETH as volatility continues to rise.

Blockchain analytics platform Lookonchain reported that an Ethereum whale who originally accumulated ETH more than a decade ago has returned to buying after previously exiting their position last year

According to the platform’s X post, the investor recently acquired 1,951 ETH at an average price of $2,182.

Separately, Lookonchain also flagged activity involving a dormant Ethereum initial coin offering participant identified as wallet “0xCD59.”

The wallet transferred its entire 10,000 ETH holdings, worth roughly $22.9 million at the time, to a new address after remaining inactive for nearly 10.8 years.

Data shared by Lookonchain showed the investor originally acquired the ETH during Ethereum’s 2014 ICO for approximately $3,100, leaving the position with gains exceeding 7,000-fold at current market prices

Traders often monitor such dormant-wallet movements closely because they can indicate potential selling pressure from early holders sitting on large unrealized profits.

## Ethereum price analysis

On the 4-hour ETH/USD price chart, the token was attempting to stabilise near $2,130 after losing support around the 20-day EMA near $2,160

ETH/USD 4-hour price chart. Source: Tradingview.

Recent price action showed Ethereum slipping below several short-term moving averages following a steady decline from the $2,400 region earlier this month.

At the same time, ETH continued trading beneath the 50-day and 100-day exponential moving averages, positioned near $2,214 and $2,253, respectively, indicating that bearish momentum still remained intact across the medium-term structure.

Momentum indicators are also suggesting that buying strength remains weak. The relative strength index, or RSI, hovered near 35, remaining below the neutral 50 level and approaching oversold territory

Although the indicator showed signs of flattening near the lower range, buyers have yet to reclaim momentum decisively.

From a price structure standpoint, Ethereum appeared to be holding a key support zone around $2,100 to $2,120

A sustained breakdown below this range could expose ETH to another decline toward the psychological $2,000 level, with additional downside support sitting near the late March consolidation area around $1,920.

On the upside, any recovery attempt would likely need to reclaim the $2,160 region first before buyers can challenge the heavier resistance cluster between $2,210 and $2,260, where multiple moving averages were converging on the 4-hour chart.

Meanwhile, continued institutional accumulation from firms such as Bitmine and renewed whale buying activity could help cushion downside pressure if broader crypto market sentiment stabilizes

However, with macro concerns and oil-price volatility still weighing on risk assets, Ethereum may continue facing choppy price action in the short term.

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