Ethereum (ETH) has erased all its Might positive factors, dropping almost 10% prior to now week.
The second-largest cryptocurrency hit an intraday low of $2,097 on Binance on Sunday, its lowest stage since April 7. At press time, the asset traded at $2,116.82, down 2.88% over the previous day.
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However what’s behind this hunch? BitMine chairman Tom Lee factors to grease.
Oil Turns into Ethereum’s Largest Headwind
In a put up on X, Lee stated Ethereum’s inverse correlation to grease hit its highest stage on file. He described the transfer in crude because the dominant power pressuring ETH in latest weeks.
“If one is questioning why Ethereum ETH has been below promoting strain: To me, rising oil costs is the most important headwind. ETH inverse correlation to grease is the best ever,” he stated.
In the meantime, Brent crude traded close to $111 per barrel on Monday, up roughly 16.4% over the previous month. The rally displays ongoing US-Iran tensions and the closure of the Strait of Hormuz.
Nevertheless, Lee argued an oil reversal would unlock ETH’s restoration. Regardless of the latest weak point, the manager known as this “short-term tactical noise.” He talked about that the structural drivers behind ETH stay firmly in place.
The Fundstrat co-founder highlighted tokenization and agentic AI as the larger forces shaping Ethereum’s trajectory by way of 2026.
These components have featured in his prior ETH forecasts. Earlier this month, he projected that ETH might attain $9,000 to $12,000 by year-end.
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