BitMine's Tom Lee Suggests Ether May Be Entering Bitcoin-Like Supercycle
BitMine's Tom Lee has indicated that Ether (ETH) may be entering a growth cycle similar to Bitcoin's 2017 supercycle. ETH is currently trading near the average cost basis of long-term holders, a level historically associated with strong accumulation.
Long-term wallets hold 27 million ETH, with 17 million ETH moved into accumulation addresses in 2025, up from 10 million at the start of the year. The current ETH price is around $3,150, approximately $200 above the average cost basis of long-term accumulators. Lee notes that if ETH dips to $2,900, it may present one of the strongest long-term accumulation opportunities.
Drawing a parallel to Bitcoin's 2017 cycle—when BTC drew down near $1,000 before surging to new heights—Lee suggests Ethereum may follow a similar trajectory, potentially leading to a large price increase. Ethereum previously reached an all-time high of $4,946 in August, while Bitcoin topped $126,000 in October before experiencing pullbacks of around 25% for BTC and over 35% for ETH.
Ethereum whales holding 10,000 to 100,000 ETH have accumulated 7.6 million ETH since April, marking a 52% increase. This signals rising institutional exposure amid smaller holders trimming their positions. On-chain data shows spikes in spot trading volume since early November, consistent with patterns observed prior to large price moves.
Additionally, Ethereum's gas fees have declined to 0.067 Gwei following the Dencun upgrade in March 2024, which reduced base-layer fee revenue by about 99%.
