Ethereum Could Be Forming a Major Bottom — Tom Lee Explains Why
Ethereum is entering a rare combination of on-chain conditions that historically aligned with major cycle lows. According to Fundstrat’s Tom Lee, the setup forming this week could become the turning point that eventually sends ETH toward the $12,000 range.
The ETH/BTC ratio is the first key indicator. At 0.032, it is near an eight-year low. Based on its long-term average, ETH appears extremely undervalued, trading far below its theoretical fair value.
Another indicator is the market-cap-to-TVL ratio, which is approaching a 1:1 structure — a level previously associated with long-term bottoms.
Institutional behaviour is reinforcing the signal. BitMine Immersion accumulated 54,156 ETH last week and now holds 3.56 million ETH, despite sitting on a significant unrealized loss. The company aims to own up to 5% of the circulating supply.
This Friday, BitMine will publish its Q4 and FY2026 results — a potentially important catalyst for ETH.