Ethereum Falls Below $3,000 as Tom Lee Says Market Is Nearing a Bottom

Ethereum slipped under the $3,000 mark amid renewed weakness across crypto markets, but some analysts see potential for stabilization this week. Fundstrat co-founder Tom Lee told investors that ETH appears “pretty close” to bottoming, citing a combination of on-chain metrics, market positioning and sentiment indicators.

The descent below $3,000 reflects broader risk-off flows that have pressured major digital assets. Traders pointed to declining spot demand and elevated volatility as contributors to the pullback. Despite the short-term slide, Lee emphasized that several technical signals and fundamental trends have begun to align in a way that historically precedes price troughs.

Lee’s outlook centers on metrics such as reduced net outflows from trading venues, improving miner and staking dynamics, and sentiment measures that have swung toward pessimism—conditions that, in past cycles, have often signaled a near-term floor. He acknowledged the possibility of additional headline-driven swings but argued the aggregate readings suggest the market is approaching a recovery-ready setup.

Market participants remain cautious. Liquidity remains uneven, and macroeconomic factors—like interest rate expectations and equity market direction—continue to influence crypto performance. Short-term traders will monitor volume, funding rates and order-book behavior for confirmation that the selling pressure is abating.

Longer-term investors are watching development milestones and adoption metrics. Progress on network upgrades, institutional custody flows and exchange-traded product interest could provide a more durable foundation if price action stabilizes. That said, analysts stress that any bottoming phase can take time to validate and may include false starts.

For now, Lee’s perspective offers a measured counterpoint to the immediate downside: while price dipped below a notable psychological level, a mix of on-chain data and sentiment indicators may indicate the worst of the move is close to passing. Traders and investors will be parsing fresh data this week to see whether these signals translate into sustained buying or if volatility persists.