Ethereum Price Forecast: Tom Lee Outlines 4 Bullish Cases for ETH Despite $2,100 Support Breakdown

Ethereum (ETH) price has dropped below $2,100 amid rising outflows from ETH ETFs, a bearish sentiment in the crypto market and rising liquidations. But amid the bearish conditions, Bitmine’s Tom Lee has outlined several reasons why the Ethereum case remains bullish.

On-chain data seemingly supports Lee’s bullish thesis because staking activity is increasing and the DeFi Total Value Locked (TVL) is at its highest since August.

ETH value today is down 1.3% today, November 10, to trade at 2,094 at the time of writing.

Tom Lee Outlines Ethereum’s Bull Case

In an X post responding to concerns around the recent downturn in financial markets, Lee opined that even if Ethereum’s price action was “disappointing,” it also reflected the “impatience of markets.”

Firstly, he pointed out the tokenization supercycle. Per Lee, the vast majority of tokenization is taking place on Ethereum, which could be bullish for price.

Lee also mentioned the recent statement made by Ethereum co-founder Vitalik Buterin that ETH is a store of value as the second bull case for the biggest altcoin.

Thirdly, he noted that the crypto bull market was still in the early stages, giving Ethereum price much room to rally. Lastly, he noted that the AI narrative and IPOs was not drying up capital inflows contrary to the popular belief by bears.

These four bull cases for Ethereum are why the Bitmine Chairman is bullish on price for the next 24 to 36 months.

Fundamentals Remain Strong Despite Price Weakness

Lee’s bullish outlook coincided with strong fundamentals for Ethereum even as the price drops by 16% in one month.

CryptoQuant analyst Pelinay notes that the Ethereum staking rate has increased by around 4.32% since May, thereby reducing the amount of ETH that is available for trading.

“Higher staking participation may reduce liquid ETH available for selling, potentially supporting prices when demand remains strong,” the analyst said.

Data from DeFiLlama also shows that the DeFi TVL reached 19.82 million ETH on November 9. This marks the first time that the TVL has reached this level since August 19.

The TVL stood at 18.92 million ETH on November 5, suggesting that it has increased by 900,000 ETH in four days.

The rising TVL is also bullish for Ethereum price because it increases utility for Ethereum, which then raises demand and subsequently the price.

ETF and Spot Outflows Signal More Downside in the Near Term Despite Network Strength

Data from SoSoValue shows that there have been three straight days of outflows from Ethereum ETFs. On November 9, these outflows topped $184.51 million, with this being the highest daily outflows seen since October 6.

The outflows are causing a bearish future Ethereum price outlook by dampening the sentiment of retail traders who may also mimic the ETF sellers, forcing Ethereum price to drop.

The spot market shows a similar outlook. Data from CoinGlass shows that Ethereum has seen eight straight days of outflows. When these outflows are rising, it shows that selling pressure is outpacing the buying pressure, and this is causing a decline in Ethereum price.

The ETF selling and the rising outflows suggest that traders are not sharing Lee’s bullish outlook, as they sell to minimize their losses.

Ethereum Price Prediction as Downtrend Strengthens

The weekly chart for Ethereum price shows that it has dropped below all the EMAs. This setup confirms that the downtrend is strong.

At the same time, Ethereum has moved down to test the support at $2,060. If ETH closes below this support, it could move to the 123.6% Fib of $1,800.

Meanwhile, the MACD line has dropped below the signal line to create a sell signal. If sellers enter the market because of this signal, it raises the odds of Ethereum price dropping to $1,800.

Ethereum can only confirm a rebound if it can move above the resistance at the 61.8% Fib of $2,345. But such gains depend on the selling pressure in the ETF and spot markets easing.