Key Takeaways

Is Ethereum’s recovery sustainable beyond the post-crash rebound?

On-chain fundamentals and institutional flows suggest it is, with Ethereum showing signs of leading the next leg of the market cycle.

What’s driving renewed investor confidence in ETH?

Tightening liquid supply, rising staking activity, and capital rotation are aligning with Tom Lee’s “supercycle” thesis.

The market is on track to recover its post-crash losses, and Ethereum [ETH] is no exception. A 4% move to $4,400 would see ETH fully recover its drawdown, putting previously underwater holders back “In the Money.”

That said, sustaining this run is a whole different game.

With the market flipping risk-on, shifting capital from “market-led” to “ETH-led” momentum will be key to keeping the $5k target in play. From the looks of it, investors already seem to be front-running that divergence.

Tom Lee doubles down on Ethereum’s super-cycle call

Fundstrat’s Tom Lee said,

“Ethereum remains in a supercycle.”

Highlighting robust on-chain activity across the L1 and L2 layers, Lee pointed out that fundamentals often front-run price action, and in ETH’s case, that trend continued to validate its long-term structural uptrend. 

On-chain data supported the narrative.

Ethereum’s TVL rose 5% to $90 billion in the past 24 hours. Stablecoin Supply climbed above $162 billion for the first time, and the Total Value Staked (TVS) hovered near its all-time high of 36.19 million ETH.