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Crypto Carnage Continues — Tom Lee Exposes What’s Really Going On

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The global crypto market pulled back to about $3.23 trillion on Monday, down close to a percent from recent levels, and signs of weakness were visible across most top tokens.

According to market trackers, investor mood is chilled — the Fear and Greed Index sits at 18, labeled extreme fear — and the average Relative Strength Index for major coins hovers near 41, a reading that leans toward oversold conditions.

Bitcoin was trading around $95,400 while Ethereum hovered near $3,155, with many large-cap assets showing only small daily moves.

Tom Lee Issues Long-Term Take

According to Tom Lee, BitMine chairman and an early Bitcoin bull at Fundstrat, the current pullback does not wipe out the potential for much larger gains down the road.

Lee noted that Bitcoin rose roughly 100x from his first recommendation back in 2017, when the price was near $1,000, and he suggested Ethereum may be at the start of a similar long-term run.

He cautioned that investors who benefited from past rallies had to endure extreme drops — some as deep as 75% — and said present volatility could be the market “discounting a massive future.”

Short-Term Signals Point To Oversold Conditions

Market technicians and on-chain analysts are pointing to clear short-term stress. The Fear and Greed Index at 18 is one headline figure. Average RSI readings near 41 imply more selling than buying momentum right now.

Based on reports from CryptoQuant, Ether trading around $3,150 sits roughly $200 above the mean cost basis held by long-term accumulators — a level that could act as support if those holders remain patient.

Bitcoin, by comparison, has pulled back about 20% from its recent peak, while Ethereum has fallen more than 30% from its high.

Ether Holder Levels Close To Historic Peaks

Ethereum’s path this year diverged from Bitcoin for a while: ETH topped out at $4,940 in August, while Bitcoin pushed to a peak above $126,000 in October.

That gap left Ether lagging for months even as Bitcoin made fresh highs. Now, with ETH nearer to where long-term holders bought in, some analysts see a potential floor forming.

Reports have disclosed that these accumulators have been “patiently stacking,” and their cost positions matter for near-term price action.

Altcoins Show Little Momentum

Smaller large-cap coins are holding weaker ground. XRP was trading near $2.20, BNB around $932 and Solana close to $138, with most of last week’s gains fading.

Other popular tokens — Tron, Dogecoin, Cardano, Chainlink, Hyperliquid and Zcash — are under light selling pressure and low net movement, suggesting market-wide caution rather than a single-asset sell-off.

Bigger Players, Liquidations And The Outlook

Lee added that he expects signs of recovery and stability within six to eight weeks. He advised against using borrowed funds now, warning that forced sell-offs can accelerate losses.

According to his remarks, aggressive positions designed to trigger liquidations by large firms can amplify price swings. He cautioned that some of the sharper moves may be tied to stress among big market makers.

Featured image from Unsplash, chart from TradingView

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