Bitmine Immersion Technologies (NYSE:BMNR) Chairman Tom Lee said investors are abandoning Ethereum (CRYPTO: ETH) at exactly the wrong moment, calling the current selloff a classic rage quit at the bottom.

Why Lee Thinks This Is Ethereum’s 1.0 To 2.0 Transition

Lee compared Ethereum’s current drawdown to the years Amazon (NASDAQ:AMZN), Nvidia (NASDAQ:NVDA), and JPMorgan (NYSE:JPM) spent range-bound before their biggest runs.

Amazon went from $6 to $241 after AWS scaled. Nvidia went from $1 to $197 after ChatGPT arrived. JPMorgan went from $58 to $334 after becoming a truly global bank.

Each took years of sideways price action before the addressable market expanded enough to move the stock.

Lee said ETH at $1,800 sits in that same window, with Ethereum co-creator Joe Lubin seeing a path to $250,000 as the fully realized version of that thesis.

What Is Actually Building On Ethereum Right Now?

Lee pointed to Robinhood Chain as the clearest proof that ETH is becoming money. 

The Layer-2 network launched in July on Arbitrum, crossed $1 billion in daily volume within weeks, and uses ETH as its native gas token with all transaction fees denominated in ETH and settled on Ethereum’s base layer. 

Robinhood Markets (NASDAQ:HOOD) has 27 million users paying fees in ETH without necessarily thinking of it as crypto.

Beyond Robinhood, Lee cited BlackRock’s (NYSE:BLK) BUIDL, JPMorgan’s Onyx, Securitize, and Ondo Finance (CRYPTO: ONDO) as tokenization wins from the past 12 months that did not exist during the 2022 bear market. 

Ethereum also carries nearly 7,000 developers on the EVM stack, more than any other chain, and leads every major continent in developer activity according to Electric Capital data.

The AI Agent Economy and Why Tom Lee Is Betting on ETH as Its Settlement Layer

Lee argued that AI agents will eventually generate more income than the humans who deploy them, creating a trust problem only decentralized blockchain infrastructure can solve.

He called this the “uncanny valley of wealth” and said blockchain becomes the barrier between humans and AI, with ETH as the working capital layer of that economy.

Marc Andreessen of A16Z framed it similarly, calling AI and crypto a grand unification.

Arthur Hayes Reverses His ETH Position Within Three Weeks

On-chain data tracked by Onchain Lens showed Arthur Hayes accumulating 1,939 ETH in a single day through OTC transactions with Galaxy Digital and FalconX, spending roughly $3.72 million combined. 

The purchases reverse a position he exited in late June when he sold 6,000 ETH at an estimated $606,000 loss alongside exits from Worldcoin, Zcash, NEAR, and Hyperliquid.

Ethereum Technical Analysis: Where ETH Stands Right Now

ETH remains down 47.86% over the past 12 months with the November 2025 death cross still in place.

The 50-day SMA at $1,740 sits below the 200-day SMA at $2,194, keeping overhead supply intact.

Key levels for ETH:

  • $1,753 — 20-day SMA acting as near-term support
  • $1,740 — 50-day SMA, first level to hold on any pullback
  • $2,194 — 200-day SMA where longer-term overhead supply sits

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