- Tom Lee warns the ETH correction may be caused by a major market maker facing a liquidity hole, not fundamentals or regulation.
- Ethereum is approaching key wedge support near $3K, with long-term potential still pointing toward a $10K target if buyers hold the line.
- Meme coin Maxi Doge ($MAXI) is surging during the downturn, raising over $4M as traders look for fresh momentum.
Ethereum has been slipping into a pretty uneasy zone lately, drifting around the $3,000 level while Bitcoin hangs near $91K. The market just feels tense… and the Fear & Greed Index dropping to 16 only confirms it. RSI readings across the board are dipping under 40, showing traders are basically sitting with their hands half-off the wheel right now. Billionaire analyst Tom Lee, who’s usually the cheerleader for long-term Ethereum growth, stepped in with a pretty unsettling take. He says this correction isn’t really about fundamentals or regulation at all — it might be something way more structural, something deeper.
A Liquidity Hole Could Be Behind the Selloff
Lee hinted that the recent crypto weakness could be coming from a major market maker dealing with a “hole” in their balance sheet. That kind of liquidity gap is dangerous because sharks in the market can smell it, pushing prices down just far enough to force liquidations. And once those automated sells start firing? It becomes a messy chain reaction. Lee pointed to some strange order book behavior, sudden pockets of missing liquidity, and the way prices have been getting nudged around — all signs that someone big might be under pressure, or that rivals are purposely pushing charts lower. Still, he argues this pain is temporary. Similar to Bitcoin back in 2017, he believes Ethereum could actually be on the verge of a multi-year supercycle once the dust settles.
ETH Price Setup Looks Fragile but Long-Term Trend Still Intact
On the charts, Ethereum is drifting toward the lower edge of a long-term rising wedge, which isn’t the happiest place to be. A breakdown from that structure could send ETH toward deeper support zones before it can ever try for higher targets. There is a projected path toward $10,000 in the long-term models, but ETH would need to first survive any retest below current levels. Indicators like RSI and MACD have flattened out, showing traders aren’t ready to pick a direction yet — everyone seems to be waiting for someone else to flinch first.
Meme Coin Mania Keeps Rolling as Maxi Doge Takes the Spotlight
While Ethereum takes a breather, the meme coin world is doing what it always does—getting louder. Maxi Doge ($MAXI), built on Ethereum and powered by a trader-first vibe, has already raised more than $4 million in its presale. The project leans into community energy, letting traders share setups, connect, and have a little fun while chasing upside. Backed by audits and a pretty active crowd, the coin is picking up traction at a time when ETH holders are just looking for signs of life in the market.
