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

Core Viewpoint - Ethereum (ETH) is currently trading above $3,000, with predictions from Fundstrat's Tom Lee suggesting it may be nearing a bottom due to various indicators and a strong long-term narrative despite recent volatility [2][3]. Group 1: Market Indicators - Tom Lee highlighted the creation of stablecoins, BlackRock's initiative to tokenize assets, and Wall Street's interest in bringing traditional assets on-chain as positive signs for Ethereum's future [3]. - Ethereum's market value to locked asset ratio is approaching a historical bottom level of around 50%, indicating potential for price stabilization [5][6]. - The ETH-BTC ratio is currently at 0.032, suggesting that Ethereum is undervalued compared to Bitcoin, with a theoretical valuation near $12,000 based on an eight-year average [8][9]. Group 2: Price Analysis - Ethereum is currently facing resistance below a descending trendline, which has consistently rejected price rallies since mid-October [11]. - Attempts to break into the $3,350 to $3,500 range have failed, resulting in a series of lower highs, indicating controlled selling pressure [12][13]. - Key moving averages, including the 20-day EMA at $3,397, the 50-day EMA at $3,705, and the 100-day EMA at $3,782, are reinforcing a medium-term bearish structure, while the 200-day EMA at $3,564 shows signs of flattening, suggesting a weakening broader trend [14].