ETH Dips Below $3,000 But Tom Lee Predicts It's 'Pretty Close To Bottoming This Week'

Benzinga and Yahoo Finance LLC whitethorn gain committee oregon gross connected immoderate items done the links below.

Ethereum (CRYPTO: ETH) is backmost supra $3,000 connected Tuesday greeting arsenic Fundstrat's Tom Lee predicts it is "pretty adjacent to bottoming this week."

Lee connected Monday connected CNBC said that Ethereum's semipermanent communicative remains intact contempt caller volatility.

He highlighted stablecoin creation, BlackRock's propulsion to tokenize assets and Wall Street's involvement successful bringing stocks, bonds and existent property on-chain.

He described Ethereum arsenic the lone "neutral, 100% uptime blockchain" susceptible of supporting that shift.

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Lee besides noted that Ethereum has respective ways of forming a structural floor.

One is the ratio betwixt ETH's marketplace worth and the worth of assets locked connected the network.

He said Ethereum historically bottoms erstwhile that ratio hits astir 50%, adding that existent readings are adjacent that level.

A 2nd indicator, Lee said, is Ethereum's ratio to Bitcoin.

He cited an ETH–BTC ratio of 0.032 against an eight-year mean that implies a theoretical valuation adjacent $12,000.

He argued that Ethereum is undervalued and gaining comparative spot compared to Bitcoin (CRYPTO: BTC) this year.

ETH Price Analysis (Source: TradingView)

Ethereum remains pinned beneath the descending trendline that has rejected each rally since mid-October.

Attempts to interruption into the $3,350 to $3,500 portion person failed, creating a series of little highs that signals controlled selling.

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The marketplace continues to respond to "trendline memory," and sellers person defended that level consistently.

The 20-day EMA sits adjacent $3,397 and has capped each bounce.

The 50-day EMA astatine $3,705 and the 100-day EMA astatine $3,782 reenforce the medium-term bearish structure.

Even the 200-day EMA astatine $3,564 has started to flatten, showing that the broader inclination is losing strength.