Key Takeaways Is Ethereum’s recovery sustainable beyond the post-crash rebound?

On-chain fundamentals and institutional flows suggest it is, with Ethereum showing signs of leading the next leg of the market cycle.

What’s driving renewed investor confidence in ETH?

Tightening liquid supply, rising staking activity, and capital rotation are aligning with Tom Lee’s “supercycle” thesis.

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The market is on track to recover its post-crash losses, and Ethereum [ETH] is no exception. A 4% move to $4,400 would see ETH fully recover its drawdown, putting previously underwater holders back “In the Money.”

That said, sustaining this run is a whole different game.

With the market flipping risk-on, shifting capital from “market-led” to “ETH-led” momentum will be key to keeping the $5k target in play. From the looks of it, investors already seem to be front-running that divergence.

Tom Lee doubles down on Ethereum’s super-cycle call

Fundstrat’s Tom Lee said,

“Ethereum remains in a supercycle.”

Highlighting robust on-chain activity across the L1 and L2 layers, Lee pointed out that fundamentals often front-run price action, and in ETH’s case, that trend continued to validate its long-term structural uptrend. 

On-chain data supported the narrative.

Ethereum’s TVL rose 5% to $90 billion in the past 24 hours. Stablecoin Supply climbed above $162 billion for the first time, and the Total Value Staked (TVS) hovered near its all-time high of 36.19 million ETH.

Together, these metrics signal renewed network utilization.

In simple terms, liquidity is rotating into yield-bearing protocols, which in turn reduces circulating supply. For reference, since the October crash, roughly 160k ETH have been staked, suggesting long-term investor conviction.

Supported by this on-chain strength, Tom Lee maintained a bullish stance on Ethereum, reaffirming that the asset remains in a broader supercycle phase.

Notably, investor positioning appeared to be aligning with this view.

ETH dominance climbs as Bitcoin retreats

Ethereum’s undervaluation thesis is starting to play out.

From a technical standpoint, Ethereum dominance (ETH.D) has begun to diverge inversely from Bitcoin dominance (BTC.D), climbing 3% in under 48 hours to 13.2%, while BTC.D has logged four consecutive red sessions.

Meanwhile, SharpLink (SBET), following a month of inactivity, accumulated 19.72k ETH worth $78.3 million, establishing a cost basis near $4,062. The move hinted at institutional confidence in Ethereum’s upside potential.

In short, ETH’s market share rose while its liquid supply tightened, a setup that typically favors sustained price appreciation.

Altogether, the convergence of rising on-chain metrics and institutional flows suggested strategic accumulation by investors anticipating further upside.

In this context, Tom Lee’s “supercycle” narrative is finding fresh validation. On-chain strength, liquidity rotation, and improving macro sentiment are increasingly aligning behind Ethereum’s long-term structural uptrend.

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