Tom Lee, head of research at Fundstrat, is betting on a quick rebound Ether. He pointed to a pattern dating back to 2018: every time ETH dropped deeply, it later recovered strongly.

This history shaped the tone of his remarks in Hong Kong, where he argued that previous collapses had ended with quick turnarounds.

Tom Lee advocates a quick rebound

According to Lee Ethereum, yes survived since 2018, it has experienced a decline of more than 50% eight times and has rebounded each time.

Based on these past moves, he said another keen recovery was likely. Analysts often disagree on how much weight to give to past cycles.

$ETH 100% V-shaped record 👀

Tom Lee highlights Ethereum’s eight V-shaped recoveries since 2018.

Tom DeMark, whose models emulate macro legends like Paul Tudor Jones and are used in institutional positions, says a final cut around $1,890 would “perfect” the bottom.

This… pic.twitter.com/j9zWoUOLgP

— SamAlτcoin.eth (@SAMALTCOIN_ETH) February 11, 2026

Market conditions are not identical right now, but patterns matter because investors apply them. Some analysts saw the $1,890 level as a likely low.

They said he might be tested twice for an “undercut” before he stabilized. This type of setup is common in volatile markets and is used to find entry points.

Staking limits the flow of liquid

Reports show that demand for real estate remains high even as prices fall. The queue to enter the validator has extended to approximately 21 days, and approximately 4 million ETH is waiting for acceptance.

This resulted in over 30% of the total supply being locked up – approximately 36.7 million ETH. People earn around 2.80% APY on their staked coins, which is a modest return by cryptocurrency standards, but enough to convince many holders to lock up their funds.

When immense sums are tied up in this way, tradable supply is reduced and price responses can be amplified both downward and upward.

Ethereum Price Action and Market Tension

Market movements were keen. ETH at the time of writing, it has fallen to around $1,900, down 5.4% over the past seven days, and has failed to stay above $2,000 in recent days.

Over the last 30 days, the token has dropped by approximately 36%. There have been massive liquidations, with over $1 billion worth of positions being closed as leverage has to be reduced.

This generated rapid selling and left traders cautious. Economic data, geopolitical headlines and waiting for inflation readings in the US add to the nervous mood. Some exchanges now treat any rebound as uncertain until volatility subsides.

Whether the rebound happens quickly or takes time, Lee’s position is clear: keen declines have not spelled the end of Ethereum in the past. He sees the current tension as another chapter in a familiar cycle, not a structural breakdown.

Featured image from Unsplash, chart from TradingView