Ethereum Could Follow Bitcoin’s 2017 Growth Pattern, Analyst Predicts

Ethereum appears to be entering a phase of growth similar to Bitcoin’s rally in 2017, according to market analyst Tom Lee. He observed that ETH is facing conditions like those Bitcoin experienced eight years ago, with volatility and uncertainty before a major upswing. Even after a recent dip, Ethereum may see a strong recovery.

Ethereum and Bitcoin’s Historical Parallels

Tom Lee, founder of Fundstrat, recalled that his firm first recommended Bitcoin when it was near $1,000 in 2017. Despite facing drawdowns of up to 75%, Bitcoin eventually rose more than 100 times, creating what Lee describes as a “Supercycle.”

Bitcoin is a volatile asset.

We first recommended Bitcoin to Fundstrat clients in 2017 (1%-2% allocation)
- Bitcoin 2017 ~$1,000

Since then (past 8.5 years), $BTC:
- 6 declines > -50%
- 3 declines > - 75%

2025, Bitcoin 100x from our first recommendation

TAKEAWAY:
To have… pic.twitter.com/xtIRGLdnWM

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) November 16, 2025

This may apply to Ethereum as well. Its recent 35% pullback from $4,946 could be part of a broader accumulation phase. Lee says short-term doubts are normal early in bull markets and often appear before big gains.

History shows that investors who endure high volatility are often rewarded. Lee notes that profiting from such cycles requires patience during critical moments when selling pressure is at its peak.

On-chain data supports this view. CryptoQuant analyst Burak Kesmeci observed that ETH is trading just above the average cost of long-term holders, indicating that accumulation is prevailing over liquidation.

ETH Whale Activity

Ethereum’s long-term holders have been steadily adding to their positions in 2025, with about 17 million ETH moving into accumulation wallets. Total holdings in long-term wallets now reach 27 million ETH, almost three times more than at the start of the year.

Large investors, often called whales, are increasing their exposure while smaller holders reduce theirs. CryptoQuant reports that wallets holding 10,000 to 100,000 ETH have added 7.6 million ETH since April, a 52% rise. Similar trends in the past have often led to market recoveries.

Price dips near $2,900 may be good buying opportunities. Analysts say temporary weakness allows long-term holders to buy at better prices, creating potential for gains when market confidence returns.

At the same time, Ethereum network activity has slowed, with gas fees down to 0.067 Gwei. While lower activity might seem negative, it could also show more use of layer-2 solutions after the 2024 Dencun upgrade, which cut transaction costs by almost 99%.

Market Dynamics of Ethereum

Ethereum is trading around $3,195, down 1.15% for the day, while daily volume has risen nearly 88%. Higher activity with a small price drop often shows a market in compression, where prices tighten before a potential breakout. ETH remains below key averages, with the 30-day SMA at $3,664 and RSI14 at 32.89, close to oversold. The MACD shows bearish momentum, suggesting short-term pressure.

Traders are watching $3,200 as key support. A sustained drop below this level could push ETH toward the 78.6% Fibonacci retracement at $3,273, a common pivot point. On the other hand, a move above $3,400 could signal that the recent downtrend is over and allow prices to rise again.

Institutional investors add more context. Retail traders are cautious, but larger holders seem to be accumulating, showing confidence in Ethereum’s longer-term trend. This is similar to past cycles, where big players built positions during consolidation before upward moves.

What to Expect from Ethereum?

Ethereum seems to be going through a period of change. Like Bitcoin in 2017, short-term drops and swings are part of a bigger trend that favors long-term holders. Accumulation trends and whale behavior indicate that investors with good timing may see gains if ETH starts a sustained rise. While predictions are never guaranteed, looking at Bitcoin’s historic Supercycle can help understand Ethereum’s prospects.