Ethereum Has A Big Problem (Tom Lee In Shambles)

Tom Lee is very much part of this equation. And I'm thinking, man, East got a big problem right now. And that problem is, who the heck is going to buy this crap next? Him buying 5% of the supply has done nothing. Nothing. Because I think right now, I've been thinking about Ethereum. I'm looking at my Ethereum bag and saying, "Do I really need to keep holding Ethereum? Years and years of disgusting underperformance. I could take it and buy almost literally anything else in the market." Well, I mean, not literally anything else, but a lot of stuff in the market and do better. And there's a few things that are on the short list I might swap my ETH out for. Maybe more Athena, more Sooie, maybe take a position in near for example. But I look at Ethereum now and Tom Lee is very much part of this equation. And I'm thinking, man, East got a big problem right now. And that problem is who the heck is going to buy this crap next? Because here's the deal, Leo. Bit mine just purchased another 12,500 Ethereum. They have about 70,000 approximately Ethereum still to go until they hit the 5% target. At which point Tom Lee has said they're not buying any more Ethereum. That's it. Dunzos. Okay, that's problem. Tom Lee has just acquired 5% of the supply of Ethereum over the last 12 months, maybe 14 months, whatever. And the price is 23 or $2,400 right now. Him buying 5% of the supply has done nothing. Oh, there was a short pump on the narrative of him buying back in August or whatever last year. But now what? Tom Lee's about to stop buying. Who the heck's going to buy Vitaliccoin after that? Man, that's a problem. Even if they do buy Vitaliccoin, is it really the best place to put your money now? Maybe ETH outperforms versus BTC potentially as much as 50% even even a 100% outperforms versus Bitcoin this cycle. I could see that. I could see that. It wouldn't shock me to see. And that would be okay if you think that Bitcoin goes to let's say $300,000 a cycle as an example. Well, okay, that's a little bit over 200% gains from the current level. So, ETH's going to do 300 to 400% gains. Round ballpark of numbers here. So, in that scenario, what are we looking at? You know what? ETH to 10 or 12K. Ain't bad. Ain't bad. But I'm sorry, but if ETH goes to 10K, what's Salon gonna be at? Thousand bucks. 2x the upside. What's near going to be at? 100 bucks. It's 20x. That's 5x the upside. ETH may not be the best place to put your money, especially because we need to find a new buyer. Tom Lee's not buying. Who the heck's going to buy Ethereum these days, man? If you're an American, this is for you. Offshore crypto platforms, some of them are ticking time bomb. Trading perpetual swaps through VPNs is asking for frozen assets. That nonsense is officially over. See, longing and shorting crypto now 100% legal on US soil thanks to Kshi. 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It's like, yo, tell me you bought 5% of the supply of Ethereum without tell me about bought 5% of the supply of Ethereum, dog. That's crazy. I hope he's right because if he's right, my Bitmine immersion bags are going to the effing moon. 20x upside in those, I think. Don't even need to hold Ethereum. Bit mine's probably the better beta bet anyway. If you're going to hold ETH, why not just buy Bit Mine? You know, Tom Lee is going to juice that [ __ ] up. It's an interesting uh thing. If it goes to 25 to50 $50,000 Ethereum I mean come on Tom come on you can be bullish on ETH man but that's like that's out there bro that's that's a big number Pal says Ethereum is wildly undervalued that's exactly how I see Ethereum's future Ralph Pal and Fund strat and I share fundamental belief the transformation of global finance will create enorous demand for programmable blocked infrastructure makes a particularly important point Ethereum's value goes far beyond the fees it collects today the opportunity isn't simply how much Ethereum is worth today it's how much of tomorrow's financial system could it ultimately depend on it that's an interesting point Because if ETH is able to meaningfully become the rails of global finance, it and its layer 2 ecosystem, well, then it's worth a hell of a lot more. It's worth more than $10,000. And Tom Le's right. Maybe it's worth 20 or 30 or 40 or $50,000. At which point holding Ethereum feels like a good bet. The problem is we have all these other blockchains. Look, there's not many competing to be honest. But let's say we have Salana, we have Sooie, we have Near and maybe a small handful of others that will also capture some of that value. It's not all going to go to Ethereum. Now, if you take an Ethereum maxi perspective like, well, it's all got to go to Ethereum. It's the only way. It's the only way has to capture all the value, but it simply won't. Never does. Nothing ever does. And I don't think it'll be the case here either because even with the low fees, hey, think about this. Okay. All right. AI agents, great. Yeah, but Salana or Sooie are dramatically better suited for AI agents than Ethereum. Let's just keep that real. ETF flows. Oh my gosh, all the ads on this page. ETF flows been pretty brutal for Ethereum recently. Look at all these outflows. We only had one inflow day on the 13th of October. $24 million in. Otherwise, it's been a slaughterfest for Ethereum ETFs recently. That'll change around pretty quickly. Remember just about 6 weeks ago we were talking about how ETH ETFs were actually outperforming versus Bitcoin ETF inflows as a percentage of market cap that is well here we are the other side of it. Wall Street will come and go and they will definitely buy Ethereum. They're probably the number one buyer of Ethereum moving forward. It's going to be Wall Street. Tom Lee ain't buying. Who the heck else is going to buy? Probably Wall Street ETF buyers and they'll move the price enough at some point but it's fickle money. We do have however more big suit money getting exposure. Charles Schwab launches Bitcoin and Ethereum trading for millions of clients. Good. Buy Ethereum. Charles Schwab clients. Buy Ethereum. Send it to the moon for for Tom Le. He's waiting for you. Deutsche Bank to launch Bitcoin and Ethereum custody for institutions soon. Okay. Nice. Deutsche Bank customers go buy ETH so you can send Tom Lee's bags to the moon. Look, the institutions are coming. This from Matt Hugan. The institutions are indeed coming. It's real. It's happening. It's not to be ignored. It's real. And this is the kind of stuff that they're going to buy because for your average person coming into crypto right now, buying Bitcoin and Ethereum is kind of lame. I mean, Bitcoin, okay, it's goated. It's the OG coin. It's Bitcoin, man. But you look at Ethereum, and I think it's particularly it's got a narrative problem because you look at Ethereum. What What are most people coming in buying? What are they using? They're not really using Ethereum as much. They're using Salana. More people are coming into the market all the time and they go to Salana. The money is certainly not loyal to a chain. Some of these old ETH whales have some kind of loyalty to the chain. We can say, but that's really a very specific group of people, a very small group of people. The majority of people coming on don't think that way. But Charles Schwab and Deutsche Bank investors are probably going to come in and say, "Well, it's number one. It's number two. I those names look good. I've heard about these before. Let's allocate 1% of the family office to it and never think about it again for another 10 years." Done. I can see that playing out. So, we need that kind of money to come in. Cointelegraph posted this is almost more ETH exiting staking than there's trying to enter. Uh oh, everybody's rushing to get out of the exit uh get out of ETH staking again. It's a huge spike in ETH exiting the validators. I mean it's a very very short-term trend that could easily go back down in a few days. Not a lot of new ETH is entering to stake either because a lot of that's what you've seen uh recently has been you know Tom Lee. But okay, sure is slowing down. We're seeing a bit of selling going on. You also have to contend with the fact that onchain buyers, they do buy ETH, but they're not buying in the kind of numbers that are needed to make it go to $20,000. We need institutional involvement. We need ETFs to go crazy. We need Deutsche Bank and Charles Schwab and all these other investor firms to sell this [ __ ] to their clients like crazy because Tom Lee is about to be out of the books. And that's again a problem for Ethereum. Ethereum on the monthly charts here. I want to zoom you in on this because look at this. We are probably if current price action continues and we don't just mega nuke the markets. If generally positive vibes continue in the markets, we're probably two to three months away from a bullish crossover on the monthly MAC D, which is a big damn deal. Okay, because you can see back here 2020 exiting a major bare market. What happened? We'll rally 2,000%. I do not think we're going to rally 2,000% just to be clear. But still big move, last a long time, 16 months. Then we had a lot of smaller bumps like this from basically 2023 until you know the end of uh 25. But we had three little very small impulses where we had about 100% gains lasted for a few months max and then retraced everything. So ETH is due for some kind of bigger move. It's been grinding sideways for quite a long time now. It's ready. But again, the question has to become, is it truly the best place to put your money? That's the problematic part. Real quick, 100,000 traders already open up this newsletter before the market opens. Are you one of them? The Lark Davis newsletter delivers the trade of the day, the chart of the day, market moving alpha straight to your inbox before the moves happen, not after. Every week, 100,000 people get the trade idea before the crowd does. You could be one of those people for free. Or you can find out after it's already played out. No noise, no fluff, just the setups and information worth acting on. 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