Tom Lee expects Ethereum to recover quickly, citing historical V-shaped rebounds. Analysts note strong staking interest despite recent price drops.
Tom Lee, the research head at Fundstrat, predicts a rapid recovery for Ethereum, citing the cryptocurrency's historical resilience. Since 2018, Ethereum has bounced back sharply from significant dips on eight separate occasions.
$ETH 100% V-Shape Record 👀
Lee emphasizes Ethereum's eight instances of V-shaped recoveries since 2018. Tom DeMark, known for his analytical models, suggests that a final dip near $1,890 would solidify the bottom for the asset.
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— SamAlτcoin.eth (@SAMALTCOIN_ETH) February 11, 2026
During a recent conference in Hong Kong, Lee encouraged investors to maintain their composure. He recalled a significant price drop of 64% for Ethereum from January to March of the previous year.
“In each of the eight corrections, we saw a V-shaped recovery, with the asset rebounding in every instance almost as quickly as it fell,” Lee pointed out, expressing confidence in Ethereum's fundamentals.
Potential Bottom Identified
Analyst Tom DeMark has pinpointed the $1,890 level as a potential bottom for Ethereum. Lee remarked, “We believe Ethereum is indeed close to its lows, reminiscent of the situations in fall 2018, fall 2022, and April 2025.”
He advised against obsessing over finding the perfect entry point, suggesting that investors should focus on seizing opportunities instead of selling during declines.
On February 6, Ethereum's price on Binance dipped to $1,747, hovering above its 2025 low of $1,400. The asset struggled to maintain a crucial support level of $2,000 and is currently trading at $1,981, reflecting a 36% decrease over the past month.
Staking Demand Remains Strong
Despite the recent price stagnation, interest in staking Ethereum continues to surge. ValidatorQueue reports that the staking queue has reached an all-time high of 71 days, with 4 million ETH waiting to be deposited into the smart contract.
Currently, staking coins represent 30.3% of the total supply, equating to 36.7 million ETH valued at approximately $72.7 billion. Analyst Milk Road characterized this trend as a "massive supply constraint."
"A third of all coins are out of circulation, yielding a modest 2.83% annually. Though this return isn't the most appealing in the crypto market, the queue keeps expanding," he noted. The locking up of over $70 billion worth of coins amid declining prices suggests a long-term investment strategy rather than mere speculation. Ethereum’s exchange share has also declined for six consecutive months due to the increasing demand for staking.
