- Tom Lee warns ETH may be undervalued at $3k, despite selling from mid-size holders.
- Weekly structure remains bullish, but indicators show weak demand and fading momentum.
- Daily structure flipped bullish above $3.1k, but resistance at $3,370–$3,660 could trigger a rejection.
Tom Lee from Bitmine Immersion says Ethereum sitting near $3k might actually be undervalued — but the market isn’t exactly making that call obvious. The 1k–10k ETH cohort is still selling into strength, which normally signals weakness, yet exchange supply keeps dropping at the same time. That’s the confusing part: coins leaving exchanges usually point to accumulation, not distribution. So the chart is sending mixed signals, even while smart money seems to be quietly leaning long.
A big part of the story comes from the Fusaka upgrade, which keeps pushing Ethereum toward a model where most activity shifts onto L2s while the base layer handles final settlement. That kind of structure boosts throughput, expands data capacity, and could eventually bring fees down to something people don’t complain about every week. Long-term, it’s bullish — but short-term, it doesn’t guarantee the next candle will explode upward.
Weekly Chart: Bulls Show Weakness, But Structure Still Favors Upside
On the 1-week chart, Ethereum’s overall swing structure remains bullish (even if it feels a bit shaky). That dip below $4.2k in September broke the immediate bullish momentum, sending price sweeping down into the old $2.7k demand zone from May. It wasn’t a great look, but it didn’t fully invalidate the bigger structure either.
Since then, price tapped the $2.5k–$2.7k zone and bounced about 18% in three weeks — showing there’s still a heartbeat. The RSI slipped below the neutral 50 in October, flashing bearish momentum, and the OBV turned down sharply after climbing most of the year. Neither indicator screams “strong demand,” but price action alone leaves the door cracked open for a bullish reaction from this zone.
Daily Chart: Short-Term Bullish, but Resistance Awaits
Zooming into the 1-day timeframe, the trend still leaned bearish until Ethereum reclaimed the previous local high at $3.1k. That reclaimed level flipped the internal structure bullish, which now lines up nicely with the broader weekly setup. If momentum holds, this could be the start of a larger move upward.
But north of here sits a big supply block at $3,370–$3,660 — a nasty zone that previously slapped bulls down. It’s entirely possible ETH pushes into this range only to get rejected again. OBV hasn’t shown real strength during the recent bounce, and RSI still struggles to break cleanly above 50.
Gauging ETH’s Next Move: Volume Still a Problem
Low volume is the red flag right now. It suggests a lack of conviction — the kind of environment where price can drift higher but quickly get slapped down when resistance hits. Even though daily structure technically favors the bulls, ETH could still face trouble holding above $3.2k if demand doesn’t pick up.
Market sentiment across crypto remains tense and mostly fearful, especially with Bitcoin still sitting far from the psychological $100k level. When BTC hesitates, ETH usually moves cautiously, too.
Lower Timeframes Offer the Cleanest Bullish Setup
For traders hunting something actionable, the lower timeframes look cleaner. On the 1-hour chart, a short-term demand zone sits at $3,014–$3,086. If Ethereum holds that pocket, it could produce a quick bullish move toward the $3.4k region — even if the higher timeframes stay messy for now.
