Ether on the verge of recovery: Historical patterns indicate a rebound

Ether is currently under significant pressure, but analysts see signs that a recovery is imminent. Market expert Tom Lee from Fundstrat argues that the current price weakness is part of a recurring pattern—one that consistently leads to quick V-shaped rebounds.

Price Trend: Ether Struggling for Stability

The past few weeks have been turbulent for Ether. Currently, Ether is trading around $1,970 after a 33.4% decline over the past 30 days. The year’s low was near $1,400, while the psychological $2,000 mark has remained out of reach despite multiple attempts. This volatility has unsettled many investors, but historical data tells a different story.

Historical Patterns: Why V-shaped Rebounds Keep Coming

Lee pointed out at a conference in Hong Kong an impressive statistical reality: since 2018, Ether has fallen more than 50% eight times—and on all eight occasions, a V-shaped bottom followed with a quick recovery. “Ether has recovered each time at roughly the same speed as its decline,” Lee explained. A particularly illustrative example: from January to March of last year, Ether lost 64% of its value but then recovered just as rapidly.

Tom DeMark from BitMine identifies $1,890 as a potential downside target and describes a possible “Undercut” scenario, where this level could be tested briefly twice—a pattern Lee characterizes as a “perfect bottom.” “If you’ve already seen a decline of this magnitude, you should see more opportunity than capitulation here,” Lee’s message to investors.

Bullish Signals: Staking Record Numbers Support Upside Scenarios

Beyond price movements, on-chain data reveal strong fundamental conviction. The waiting time for staking Ether has risen to a record of 71 days, with about 4 million ETH in the validator queue. Even more impressive: the proportion of staked Ether supply has reached an all-time high of 30.3%—around 36.7 million ETH.

Crypto analyst Milk Road interprets this development as a massive supply signal: “About one-third of the Ether supply is now illiquid and yields an average of 2.83% APR. When people lock up $74 billion during a price dip, they’re not speculating—they’re building a position for the long term.” This dynamic underscores that institutional and retail actors are holding onto Ether despite the price weakness.

What’s Next: Opportunities for Ether

The combination of historical rebound patterns and tightening liquidity suggests that Ether could be approaching another rapid recovery phase. Lee summarizes it succinctly: “Nothing has changed—Ether will see another V-shaped bottom.” While short-term volatility persists, fundamentals and market history indicate that the coming weeks could be decisive. For patient investors, this price pressure might present an unexpected opportunity.