Tom Lee: Ethereum Could Be Entering Bitcoin’s 2017-Style Growth Cycle

TL;DR:

• Tom Lee suggests Ethereum may be entering a Bitcoin-style growth supercycle.
• Rising institutional and retail participation supports the potential for significant ETH price gains.
• Risks persist, including regulatory pressures, making careful strategy essential for investors.

Ethereum investors may be on the brink of a significant growth phase. Tom Lee, the prominent crypto analyst, suggests that Ethereum (ETH) could be entering a cycle reminiscent of Bitcoin’s 2017 rally. The prospect of a supercycle has sparked renewed interest in Ethereum among both institutional and retail traders, especially as the market seeks high-performing assets amid broader crypto volatility. Recent trading activity indicates increasing accumulation, signaling cautious optimism.

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

Ethereum Eyes Potential Supercycle as Market Dynamics Shift

ETH’s current momentum mirrors early Bitcoin patterns, with trading volumes and institutional interest rising steadily. The coin has gained traction as exchanges report growing inflows from long-term holders, hinting that confidence may be returning to the Ethereum market. Lee emphasizes that historical data shows such accumulation phases often precede explosive growth, making the current period critical for investors.

The analyst also points to the rise of decentralized finance (DeFi) and smart contract adoption as catalysts. Ethereum’s expanding ecosystem enhances its utility, supporting the narrative that ETH could see sustained demand over the next months. If the network continues to onboard users and transactions increase, the resulting activity may fuel price appreciation.

Market indicators reveal that smaller investors are already participating in what appears to be a broad accumulation phase. Lee notes that institutional involvement is also rising, with Ethereum-focused funds reporting increased exposure. This combination of retail enthusiasm and institutional support strengthens the case for a potential long-term uptrend.

Despite optimism, risks remain. Regulatory scrutiny and broader macroeconomic conditions could impact Ethereum’s trajectory. Lee advises maintaining strategic positions while monitoring liquidity trends, suggesting that timing and exposure management will be crucial for maximizing potential gains during a supercycle scenario.