What’s Dragging Ethereum Down? BitMine’s Tom Lee Has an Answer

Ethereum (ETH) has erased all its May gains, dropping nearly 10% in the past week. 

The second-largest cryptocurrency hit an intraday low of $2,097 on Binance on Sunday, its lowest level since April 7. At press time, the asset traded at $2,116.82, down 2.88% over the past day.

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But what’s behind this slump? BitMine chairman Tom Lee points to oil.

Oil Becomes Ethereum’s Biggest Headwind

In a post on X, Lee said Ethereum’s inverse correlation to oil hit its highest level on record. He described the move in crude as the dominant force pressuring ETH in recent weeks.

“If one is wondering why Ethereum ETH has been under selling pressure: To me, rising oil prices is the biggest headwind. ETH inverse correlation to oil is the highest ever,” he said.

Meanwhile, Brent crude traded near $111 per barrel on Monday, up roughly 16.4% over the past month. The rally reflects ongoing US-Iran tensions and the closure of the Strait of Hormuz.

However, Lee argued an oil reversal would unlock ETH’s recovery. Despite the recent weakness, the executive called this “short-term tactical noise.” He mentioned that the structural drivers behind ETH remain firmly in place.

The Fundstrat co-founder highlighted tokenization and agentic AI as the bigger forces shaping Ethereum’s trajectory through 2026.

These factors have featured in his prior ETH forecasts. Earlier this month, he projected that ETH could reach $9,000 to $12,000 by year-end.

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